asked the Minister for Industry, Commerce and Energy whether he proposes to publish the agreement between himself and Aran Energy Ltd. to which he referred in his statement of 20 June 1979.
Ceisteanna—Questions. Oral Answers. - Aran Energy Ltd.
20.
No detailed, formal agreement has yet been concluded. Having considered the request by Aran Energy Ltd. for support of their application to the Norwegian authorities, the Government agreed to lend support on certain conditions. Subsequently, these conditions were expressed in a draft letter which was discussed between officials of my Department and the managing director of Aran Energy Ltd. Following these discussions, I received a letter from Aran Energy Ltd. indicating that the company accepted the conditions. That is how the matter rests at the moment. It has yet to be settled whether the arrangements agreed will be incorporated in a more formal exchange of letters or in some other form of agreement. In any event, what is envisaged here is an option which may or may not be exercised by the State.
The principal features of these arrangements have already been indicated to the House. The nature of the representations to be made by the Government to the Norwegian authorities in support of the application was not specified but there had been some discussion of this with the company. In consideration for such support the State would be entitled to hold up to 51 per cent of the shares of the company formed to hold any licence granted by the Norwegian authorities and to exercise all voting and other rights appropriate to such a shareholding. The ownership of hydrocarbons accruing to each party from any discovery in the licensed area would be in proportion to that party's percentage interest in the licensee company. The State would have the right to purchase at prices to be negotiated any oil becoming available to Aran Energy Ltd. unless that company proposed to market such oil for consumption in Ireland. I would have the right to require that all available oil should be refined in Ireland.
Exercise of the rights afforded to the State would be open for a reasonable period from the date on which a licence participation might be offered by the Norwegian authorities in response to Aran's application. In this way an opportunity is reserved for the Government before undertaking financial commitments to review the position in the light of the block or blocks in which participation might be offered by he Norwegian authorities and the work obligations or other conditions applicable. If the State decided to exercise its right to participate, it would be liable for its proportionate share of all expenditures and other obligations incurred by the licensee company.
There were certain supplemental provisions. It is contemplated that, notwithstanding the State's controlling interest in the licensee company, Aran Energy would have some involvement in the management of the venture. Aran would be free to pledge its share of any production as security for the financing of its proportion of any development costs arising, but the State would have no obligation to assist in this regard. Finally, it is made clear that the association between the parties in the joint venture would be limited to operations under the Norwegian licence and that Aran will have no special rights in respect of any other activities which may arise in connection with any licence that may be taken up.
Will the Minister publish the entire text of the agreement?
I explained that there is not a formal legal agreement. There is a letter accepting the draft conditions and I have explained the general terms of that.
Is the Minister prepared to publish that letter?
I am advised that it is not the practice in the oil industry to publish agreements relating to oil participation. In any event I would envisage that I would bow out of this and that the State's interest would be taken over by the National Oil Company. That is a matter I have to discuss with the board but I presume they might want to become involved in it in some way, although they have not power as presently constituted to engage in exploration. Nevertheless, I should like to consult them about the matter.
Have any representations been made to the Norwegian authorities to the effect that in the event of favourable terms being obtained by this company certain concessions might be made on the Irish part in relation to fishery rights?
There was no agreement of any kind in relation to fisheries, nor was there, to the best of my knowledge, any detailed negotiation in regard to it. However, the Norwegian authorities indicated that there were aspects of fishing off Ireland in which they might be interested and if this matter were to go on this is a topic they might wish to discuss more fully in the future.
Would the Minister confirm that the only reference to fishery matters was at the instance of the Norwegian authorities and that no suggestion was made by the Irish authorities that any of the concessions mentioned might be forthcoming?
The Irish authorities obviously discussed the matter with the Norwegian authorities when it was raised.
Did they give the Norwegians to understand that there might be a fruitful area of negotiation here?
Did this involve the Minister's Department or the Department of Fisheries and Forestry?
We consulted the Department of Fisheries and Forestry about it. Most of the discussions were carried on by my Department.
Question No. 21.
Why did the Minister say in the House some months ago that he knew nothing about it and that any discussions which had taken place involved the Department of Fisheries and Forestry?
When the question of detailed discussion would arise in relation to this I and my Department clearly would not be suitable to carry on the discussions and we would ask the Department of Fisheries and Forestry to do it.
Question No. 21.
The Minister said in this House that he knew nothing about it and he presumed the Department of Fisheries and Forestry were involved.
There is not a question on the Order Paper about fisheries. I am ruling out any further supplementary questions about fisheries.
The Minister is on the record of the House as saying that discussions were taking place between the Norwegian authorities and the Department of Fisheries and Forestry and that he knew nothing about it.
That is incorrect. I am not aware that I ever said that.
Can I take it that the Minister has changed his mind about the publication of documents such as those to which he referred compared with his opinion when in Opposition?
What the Deputy remembers had nothing to do with oil or oil exploration.
Oil is a mineral.
It had something to do with a matter about which the Minister knows as little as he knows about oil exploration.
I did publish the document.
Question No. 21.
The Minister knows perfectly well he is making a false, distinction.
Could the Deputy show me any of the British agreements in relation to oil exploration?
The Minister withheld part of the document he claims to have published.
Question No. 21. I am asking the Minister to answer the next question.
The Minister did not publish the complete agreement.
We are now dealing with a matter which is not on the Order Paper.
The Deputy is not correct. I published it all.
The Minister will have the opportunity of commenting on it from the other benches before very long.
I take the opportunity of welcoming Deputy Tully back to the House after two years' silence.
I have been in and out of the House watching the Minister's antics and it has been very entertaining.
It is nice to see the Deputy after his two-year holiday.