Dáil Éireann debate -
Wednesday, 11 Jun 2003

Vol. 568 No. 2

Written Answers. - Offshore Exploration.

Emmet Stagg

Question:

80 Mr. Stagg asked the Minister for Communications, Marine and Natural Resources the information available to his Department regarding reports that a drilling consortium headed by a company (details supplied) has discovered oil 125 kilometres off the Donegal coast; and if he will make a statement on the matter. [15939/03]

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

The Dooish well, which is located in the Rockall Basin 125 kilometres off the Donegal coast, was drilled last year by Enterprise Energy Ireland and its partners under Frontier Exploration Licence 2/94. Initial results from the exploration well have been encouraging. The well penetrated a substantial column of hydrocarbons. In October 2002, my colleague, the Minister of State, Deputy Browne, said that 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. Drilling operations, which had to be suspended last October due to poor weather conditions, commenced again in May with the re-entry of the Dooish well. Operations on the well are ongoing and the results have to be analysed before any further assessment can be made of the likely significance of the discovery. The results to date have not indicated that the find is oil.

Joe Sherlock

Question:

81 Mr. Sherlock asked the Minister for Communications, Marine and Natural Resources his assessment of the prospects of oil and gas exploration in Irish waters during 2003; and if he will make a statement on the matter. [15935/03]

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

As I stated in reply to a similar question on 29 January, 4 March and 15 April last, there is justification for optimism in 2003 about petroleum exploration in the Irish offshore. Much of the Atlantic margin of our offshore is either untested or under-explored and every effort is being made to promote the exploration of these areas. These efforts face considerable obstacles. Unfortunately, the past 12 months have seen a steep decline in exploration activity in north west Europe. In Ireland, there are now only seven offshore exploration licences in place, which is down from a peak of 32 just five years ago. In addition, western offshore areas are difficult to access and explore in terms of water depth, distance from land and lack of infrastructure. These define both the difficulties and the challenge faced by both the Government and the industry.

Last November, my colleague in the Department, the Minister of State, Deputy Browne, launched the Porcupine Licensing Initiative. Its purpose is to re-open the Porcupine region, closed since 1999, for exploration. The region will be opened for licensing in four tranches as it covers a large area, 241 full blocks in total. There have been some wells drilled there in the past, but it still has real exploration potential. Regrettably, there were no applications in relation to the first tranche, which had a closing date of 15 March 2003.

The results from the Dooish well that was drilled off Donegal last year by Enterprise Energy Ireland also gives grounds for optimism. The company will carry out further appraisal of the well this year. My Department has long held that there was real exploration potential within these frontier areas and these results further vindicate this view. A further exploration well will be drilled by Statoil in the Slyne/Erris Basin in 2003 under a licence commitment.

Within the past 15 months, two petroleum leases for the Corrib Gas Field and the Seven Heads Gas Field have been signed. The refusal of planning permission by An Bord Pleanála for the proposed terminal for the Corrib Gas Field means that this project is at present on hold while the developers re-evaluate their development options. Development of the Seven Heads Gas Field is under way and production is set to commence later this year. A small satellite development, South-West Kinsale Greensand, in the Kinsale Gas Field, is directed at accessing gas reserves that were not being drained effectively by the existing Kinsale Gas Field wells. The target date for gas production is July 2003. Six development wells, one exploration well, one appraisal well and one production well will be drilled throughout 2003.