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Dáil Éireann debate -
Tuesday, 4 Mar 2003

Vol. 562 No. 4

Written Answers - Offshore Exploration.

Bernard J. Durkan

Question:

294 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the various oil, gas or other explorations currently in progress; and if he will make a statement on the matter. [6506/03]

Bernard J. Durkan

Question:

295 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources if positive results have accrued from any recent explorations; and if he will make a statement on the matter. [6507/03]

Bernard J. Durkan

Question:

296 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which new oil, gas or ore explorations are planned; the number of new entrants; and if he will make a statement on the matter. [6508/03]

I propose to take Questions Nos. 294 to 296, inclusive, together.

As I said to the Deputy last November, there have been some developments in the area of offshore petroleum exploration and production. I granted Enterprise Energy Ireland and its co-venturers Statoil and Marathon a petroleum lease for the Corrib gas field on 15 November 2001. I issued subsequently all the necessary statutory approvals and consents for the development of the field. The development is at present on hold pending the determination by An Bord Pleanála of the planning appeal in relation to the terminal for the gas field. The target date for first gas is early 2005, subject of course to the decision of the planning board.

Last November saw the issue of the second petroleum lease under the 1992 terms to Ramco Seven Heads Limited and its partners. The Seven Heads group has submitted a plan of development accompanied by an environmental impact statement for my approval and I hope to do this shortly. The plan of development has a target of first gas for late 2003. Finally, Marathon proposes to drill a well later this year in the south west Kinsale Greensand region to access gas that was not being drained effectively by the existing wells.

In general, offshore exploration has been going through a difficult period in Ireland, as it has been in other countries in north west Europe. Since 1998 there has been a steep decline in exploration activity: exploration licences have declined from 32 in 1998 to seven at present and there is a commitment for only one further exploration well in 2003. However, I am assured that although these areas off the west coast have all the problems associated with frontier areas, there is considerable untested prospectivity there. This is evidenced by the very encouraging news from Enterprise Energy Ireland's Dooish well off Donegal. The well penetrated a substantial column of hydrocarbons. However, before the nature and size of the accumulation or the possibility for any commercial development can be assessed a considerable amount of analysis of existing data together with much further appraisal work will be required. Drilling and appraisal operations will resume in May 2003. In addition, there is a commitment for an exploration well which is likely to be drilled later this year in the Erris Basin off the north west coast.
Given the serious decline in exploration, my concern to push ongoing exploration activity to the highest extent possible has prompted the Porcupine Basin licensing initiative. I published on 6 November a notice setting out details of the licensing process to be followed in the initiative. The area comprises the entire Porcupine Basin, excluding the two areas currently licensed, split into four tranches based on a detailed technical evaluation of the basin's prospectivity carried out by the petroleum affairs division of my Department.
With regard to non-petroleum minerals, no new economic deposits have been discovered in recent years. There have been some encouraging results, however. Exploration adjacent to existing base metal mines at Navan, County Meath – Tara Mines Limited – and Galmoy, County Kilkenny – Arcon Mines Limited – has discovered additional resources with the potential to extend the life of those mines. A good zinc prospect area near Pallas Green, County Limerick, also has the potential to host an economic deposit and exploration is continuing. The acid test of commerciality with any new discovery is whether, having made a find, the explorer is then prepared to invest in planning for mining and so makes the necessary applications for permits to me, to the relevant local authority and to the EPA.
New exploration is continuously undertaken as part of my requirements to holders of prospecting licences, of which there were 351 current at the end of January 2003. An application for a licence from one company new to Ireland is currently being processed by my Department.
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