asked the Minister for Energy the number of exploration wells which will be drilled offshore and onshore during 1985; the number drilled in 1984 and 1983; the number of commitments to drilling for 1986; and if he will make a statement of his Department's results and evaluations on the up-to-date position.
Ceisteanna—Questions. Oral Answers. - Exploration Wells.
25.
During 1985 it is expected that at least six exploration wells will be drilled offshore Ireland but there are no plans for drilling onshore. In 1984 six exploration wells were drilled offshore and two onshore, while an appraisal well commenced in November 1983 was also completed in 1984. Six exploration wells were drilled offshore in 1983, and there was none drilled onshore. For 1986 a number of contingencies, associated with the conditions attached to licences issued in earlier rounds, could affect the precise number of commitment wells which will arise that year. It is not possible, therefore, to say at this stage what the precise level of drilling will be, as it is also likely to be affected by whatever work commitments may be negotiated in connection with third round bids.
Exploration offshore has been maintained at a reasonable level to date. Nonetheless, I would like to see the level of drilling increase, especially in view of the very great extent of our offshore area. For this reason I initiated last year the third licensing round with the object of achieving a thorough and expeditious programme of exploration in the Celtic Sea. Applications under this round are due to be received not later than 15 June 1985.
Does the Minister agree that there have been more wells drilled in the UK sector in the last six months than there have been in the entire exploration history of our coast? Is he satisfied that the new terms which he announced will attract the sort of numbers of large international companies to drill off our shores which he expects? What is the response at present to the latest round of licensing?
There are two things involved. First, we have to be very careful in making any comparison that we compare like with like. The UK offshore area is an established oil producing area. Our problem at this stage is that we are not and, obviously, until the Irish offshore becomes an oil producing province we are not comparing like with like. Secondly, the clarification of taxation announced by the Minister for Finance last January, and the clarification of State participation by myself, were designed to stimulate interest in offshore Ireland and at this stage one can only forecast that we will have a reasonable response.
Will the Minister agree that the response from the oil exploration industry in regard to the new terms announced was less than gratifying from his point of view? Is the Minister saying that we are going to have a very successful third round or not? This is the month of June and it will be finished in a couple of days, the 15th.
Saturday. The important thing is that we do what is necessary to establish offshore Ireland as an oil producing province as quickly as possible. It was with that in mind that clarification was made by the Government in recent months. It was also done on the basis that there would be a fair and equitable return to the State and to the participants from outside who would be participating in offshore developments.
Any indication of the third round? Is it going well or not?
We will have to wait for that.
It is a disaster, like I thought it would be. Last December it was a disaster.
Is that what the Deputy wishes?
The Deputy is not showing a lot of national pride.
It is not what I wish. I would love to see 100 wells being drilled but, because of the way the Government are handling it, nobody will come near the country.
The Deputy did not do too well.