The Deputy will be aware that in August of this year I announced revised licensing terms for oil and gas exploration and production. The decision to revise the fiscal licensing terms followed an independent review that included a comparative analysis of eight other exploration areas. That review had regard to energy prices, water depths, operating and capital costs, along with the key consideration of Ireland's relative prospects as a location for exploration investment. The review recommended that Ireland's fiscal terms should be revised to provide for a higher tax take in the case of more profitable fields while holding the tax take at 25% in the case of more marginal fields. The decision provides for a tax take of up to 40% in the case of more profitable fields. I also revised the non-fiscal licensing terms with a view to ensuring that exploration is conducted in both a timely and effective manner.
I am satisfied that Ireland's revised licensing terms strike the right balance. They are designed to attract what is mobile international investment, while ensuring a fair return to the State for its natural resources.