Vol. 261 No. 11
asked the Minister for Industry and Commerce whether his Department have sought any expert advice on the potential of this country's continental shelf for natural oil and gas; if so, with what result; if not, whether such a course is envisaged to ensure that financial arrangements for exploration of the shelf areas are proceeded with only after the fullest investigation so that the greatest possible benefit is conferred on the taxpayer arising from any future development.
40.
asked the Minister for Industry and Commerce whether any consideration has been given to a review of Government policy on the exploration of natural oil and gas resources in the Irish continental shelf; whether the position will be changed whereby exclusive control will, in the event of oil gas discovery, pass into private hands, which in the majority of cases will be foreign based; and whether any provision whereby there will be State partnership with the exploiting firms has been considered.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 39 and 40 together.
The present policy of the Government is to grant facilities for offshore exploration to competent private enterprise companies regardless of nationality.
Certain areas of our continental shelf are held under exclusive licence by Marathon Petroleum Ireland Limited in accordance with the Oil Exploration Agreement, 1959, as amended in 1969. The terms of any facilities granted to Marathon are fixed by that agreement.
In the remainder of the continental shelf, exploration is at a very early stage and only non-exclusive licences entitling the holders to carry out reconnaissance surveys have so far been granted. The terms on which exclusive licences and leases for detailed exploration and exploitation of offshore petroleum will be granted and the criteria to be applied in granting such licences have not yet been decided. The holders of non-exclusive exploration licences are required to submit to me, on a confidential basis, the results of any surveys carried out by them. The Geological Survey are examining the results of such surveys and all other information available regarding our continental shelf and will advise me as to the potential of the area before any decision is taken on the grant of exclusive facilities. I can assure the Deputy that all aspects of the exploration and development of our offshore petroleum resources will receive full consideration including, as suggested by the Deputy, the possibility of some form of State participation with private enterprise concerns, and I will obtain such expert advice as may be necessary in regard to these matters.
Could the Minister tell me what proportion of our continental shelf has been given over to companies with exclusive control from the point of view of the licences granted and, in relation to these companies with exclusive licences, whether the financial terms for the exploitation of this mineral wealth have been finally laid down or whether they can be altered?
In reply to the first part of the Deputy's question, there is only one company involved. In reply to the second part, the answer is 25 per cent.
One quarter has been given away.
Yes.
Have all the financial conditions been drawn up for the give-away of that quarter of the continental shelf?
Actually the conditions were drawn up some years ago.
What are the royalties?
Could the Minister say if he is satisfied that full investigations of the possibilities of exploitation of the continental shelf were made by his Department before the handing over of one quarter of our continental shelf?
All aspects were examined at the time and I am satisfied that the arrangements made with Marathon were as satisfactory as could have been arranged at that particular stage.
On a point of information, could the Minister tell me if there is any limit on the period of this licence or is it to run forever?
The licence was granted for a period of 21 years.
Is it renewable?
I have no information about the right of renewal. It was issued for a period of 21 years.
Normally there is the right of renewal.
Normally, but these are not normal leases.
In view of the unsatisfactory nature of the Minister's reply, I wish to raise this matter on the Adjournment.
The Chair will communicate with the Deputy.
