asked the Minister for Energy the plans, if any, he has to review the licensing terms on offer to oil companies for exploration off the Irish coast; and if he will make a statement on the matter.
Written Answers. - Licensing Terms to Oil Companies.
34.
There are three main factors which influence decisions by exploration companies to explore for hydrocarbons in a given area. These are
—the perceived geology of the areas,
—the state of the market for oil and
—the licensing terms and taxation regime which govern the exploration.
Only in the case of the third factor can the Government move to create conditions which encourage the exploration companies to invest in Irish exploration.
Taxation issues are obviously, a matter for the Minister for Finance but I can assure the House that, in so far as it is open to me to do so and taking account of the national interest, I will ensure that no obstacle is left in the way of exploration in our offshore. At times such as this, when oil prices are low and exploration money is scarce, Governments must look closely at the main factor affecting exploration over which they have control, namely, the national licensing terms under which exploration takes place. In that regard, our licensing terms are in general, competitive with those prevailing in western Europe. I am, however, having a review of the situation carried out in my Department and when that is completed I will take whatever additional steps I deem necessary to accelerate exploration activity, in our designated offshore areas.