asked the Minister for Industry and Commerce if he will make a statement regarding the formation of a new Irish company to search for oil and natural gas off the Irish coast; the amount, if any, of Government investment in this venture; and what percentage of profits will be retained in this country.
Ceisteanna—Questions. Oral Answers. - Oil and Gas Exploration.
37.
I take it that the Deputy's question relates to a company, the formation of which was announced recently in the Press and which issued a prospectus inviting the public to purchase shares. This is a private enterprise company and the Government have no investment in it. It has been stated that the company has entered into an agreement with a major international oil exploration company to explore Irish waters and that under the agreement the Irish company will be entitled to 20 per cent of the profits that may arise if oil or gas is discovered. I am unable to say what percentage of these or other profits will be retained in this country. The returns to the State in the form of royalties is, of course, a matter to be settled in the event of a lease being granted to the company at a later stage.
I might add that this company has been granted a non-exclusive petroleum prospecting licence jointly with another company. This licence enables the holders to carry out general exploration for petroleum in the entire designated area of Ireland's continental shelf, excluding areas held under exclusive licence.
In the granting of this licence was the question of royalties considered?
Not for prospecting.
Will the Minister be in a position shortly to tell us what royalties will be paid or when agreement will be reached about royalties?
No. There is no question of an application for a lease even. The question does not arise.
Did they not obtain a licence?
The Deputy does not seem to be aware that there is a big difference between prospecting and development.
Surely when the licence was being granted there was some discussion about royalties?
No.
They would not be discussed at all?
No.
The Minister allows the company to do what they like?
Prospecting.
The Minister mentioned areas in which there were exclusive rights of exploration.
Marathon.
Could the Minister tell us what the areas are?
A reasonably large area off the south coast and two smaller areas off the west coast.
Is there a time limit?
I do not think so. It could be about five years.
Did the Minister say they were non-exclusive?
Yes, in reply to the Deputy's question.
Does the Minister agree that the granting of a non-exclusive prospecting licence to these companies will lead in time, if oil or petroleum is discovered, to an arrangement with those companies because the Minister in giving them the first non-exclusive licence did not discuss the matter of royalties? Surely their claim to a large say in the exploitation of mineral deposits will be strengthened if they discover anything. The Minister has given away unconditionally the exploration of large areas to this company and he openly admits that he did not discuss royalties with them.
That is teetotally wrong.
Teetotally wrong. I am not having whiskey. I do not know about the Minister.
There are up to 20 of these non-exclusive licences which enable those 20 firms to explore in the very same area.
Question No. 38.
This is a very important matter. When these people come to the Minister and say they have found oil or petrol the Minister will tell them that there is teetotally no condition involved and that they should go away. Is that what the Minister is telling the House?
I will impose my conditions when any discovery has been made.
Have the company any options? If they discover oil can they negotiate?
No, there are no options.
None?
It is a non-exclusive prospecting licence.
If they discover oil can the Minister refuse to give them permission to develop? Can the Minister do that?
The Minister is in that position if he so decides.