Finian McGrath
Question:418 Deputy Finian McGrath asked the Minister for Communications, Energy and Natural Resources if he will make a statement on a matter (details supplied). [5657/09]
View answerTuesday, 17 February 2009
Questions (386)
Written answers
Exploration for petroleum is an expensive and high risk activity usually carried out by the private sector under licence from States. The stability of the regulatory regime is an important factor in attracting exploration investment. The terms applicable to successful exploration are made known in advance and have varied from time to time. Variations, which can be upwards or downwards, normally apply only to licences granted after the variation is announced. There is intense competition for exploration investment and the terms on offer have to take this fact into account. When a commercial discovery is declared, it is demised to the exploration company under a Petroleum Lease, which incorporates the conditions under which the exploration took place.
The Petroleum Lease between the State and the developers of the Corrib Gas Field was negotiated in line with the Department's "Licensing Terms for Offshore Oil and Gas Exploration and Development" and was entered into in 2001. It sets down the obligations of the parties to the lease in a range of matters and can only be amended by agreement of all parties. The lease is a confidential legal agreement and is not available to the public.
The Petroleum Lease for the Corrib Gas field has not been subject to legal proceedings and as to whether the lease could be contested legally would be a matter for the Courts should such an occasion arise. Tax treatment of profits from the gas field is governed by the Finance Acts.