Dáil Éireann debate -
Wednesday, 7 May 2003

Vol. 566 No. 1

Written Answers. - Offshore Exploration.

Martin Ferris

Question:

377 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources if his Department has updates on the likely success of drills which have been conducted by a company (details supplied) at Dooish, and by a company (details supplied) in the Seven Heads field; and the likely benefit a find is likely to have in view of the current arrangements with the exploration companies. [11735/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

The Dooish well was drilled in the Rockall basin last October by Enterprise Energy Ireland under frontier exploration licence 2/94. At the time a statement issued by my colleague Minister of State Browne said:

Before the size of the accumulation or the possibility of any commercial development can be assessed, a considerable amount of analysis of existing data together with much further appraisal work on the prospect will be required. It is expected that appraisal operations will resume at the earliest opportunity during the drilling season in 2003.

These appraisal operations commenced last weekend with the re-entry of the Dooish well 12/2-1 having received the necessary approvals from my Department. Operations on the well, which had to be suspended last October due to poor weather conditions, must be completed and the results analysed before any further assessment can be made of the likely significance of the discovery.

Consequent to my approval of a plan to develop the Seven Heads gas field, Ramco Seven Heads Limited, as operator, completed the drilling and testing of the Seven Heads gas development well in the North Celtic Sea Basin using the semi-submersible drilling rig Sedco 711. Drilling commenced on 15 March 2003 and the well was drilled to a total depth of 4260 ft. It was tested and produced dry gas at a maximum rate of 34.3 million cubic feet per day. The well was suspended pending tie-in to the field's subsea facilities and the rig was moved off location on 18 April 2003.

The Seven Heads development, with a forecast production of 300 billion cubic feet, will provide a boost to Ireland's indigenous gas output and improve the State's energy security of supply position. Depending on production levels achieved, the field could supply 10% to 15% of Ireland's gas requirements over the life of the field. The Seven Heads development will contribute to the extension of the life of the existing Kinsale gas field, thus ensuring the maintenance of a number of jobs for Marathon, and create some new jobs in the area of the Seven Heads development.

The report, The Economic Impact of the Seven Heads Gas Field on Ireland, commissioned by Ramco from Paul Sweeney and Associates, economic and business consultants, concludes that €80 million in corporation tax would be paid to the State over the life of the field and that on average over the life of the gas field, it is estimated that an average of 302 direct and indirect jobs a year would be sustained by the field while production is at the projected level.

As I said in a reply to the Deputy last November, the use of Irish goods and services is a crucial means by which exploration of our hydrocarbons adds value to the Irish economy. However, the Government does not expect exploration companies to avail of Irish goods, services or employment where these are clearly uncompetitive. It does, however, expect that any company operating in Ireland for the long-term will see that it is in its own best commercial interest to build strong links to the Irish economy and to demonstrate a significant economic and social dividend.

Martin Ferris

Question:

378 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources his views on a threat made by a company that it might close down operations if An Bord Pleanála finds against it regarding its proposed exploitation of the Corrib field; and his further views on whether this threat was an attempt to influence the outcome of the appeal. [11736/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

I am not aware of any threat made by Enterprise Energy Ireland Limited, the company involved in the development of the Corrib gas field, that it might close down operations if An Bord Pleanála's determination in relation to the building of the terminal was unfavourable to it.