asked the Minister for Energy the latest information available to his Department on the prospects of the development of oil deposits in Irish waters; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Development of Oil Deposits.
7.
It is not possible to predict with any degree of accuracy the prospects for the development of oil or gas deposits offshore Ireland until exploratory wells drilled have actually proved the presence of hydrocarbon accumulations which on appraisal and delineation are proved to be capable of sustaining production commercially. Exploration here is still at a relatively early stage and the major sedimentary basins are only partially explored.
It is not possible to say as yet whether any or all of the discoveries made so far will ultimately lead to commercial developments. One of the wells which will shortly be spudded is in fact an appraisal well to the 1983 discovery. It will be of crucial significance. If successful, this well could bring forward the day of our first oil development.
It is normal practice that statements in relation to the results of wells are in all cases issued by the operator. In accordance with specific provisions of all offshore petroleum exploration or prospective licences issued by my Department, the holders are required to furnish all information arising from their exploration activities. This information is strictly confidential however and I do not propose to depart from normal practice by adding to any statements already made.
There are no proposals before me at present for the development of any discovery. With regard to those wells which have produced encouraging results in the past my policy is to ensure that further exploration is stimulated and carried out with the ultimate aim of a successful discovery followed by development with the maximum possible speed. However the timescale for a commercial development would in the first instance, depend on when the discoveries are made and proved up.
In what way does the Minister intend to stimulate both the exploration and development of offshore oil and is the Minister satisfied with the terms laid down by the previous Government?
The terms laid down by the previous Government have resulted in the drilling programme we have on course for this year. I am looking at the terms for the future. There is a further phase finishing on 1 July with five blocks on offer. They are being looked at at the moment by various interested groups. I am keeping under review the whole question of oil exploration terms.
Has the Minister examined the terms in relation to what have been referred to as marginal fields and is he satisfied that that should operate particularly in the Celtic Sea off the Waterford Coast where there are reputedly a number of small wells rather than one large well.
I am reviewing all aspects of the exploration policy and I will make decisions on it very shortly.
On a point of information, did the Minister say he was taking Question No. 34 there as well.
No, it is just Question No. 7.
Does the Minister envisage any changes or further clarification in relation to the oil terms which presently exist? I am sure the Minister has had an opportunity to look at those terms. Given that there is a fair degree of interest, and a programme that exists with the BP Company, does the Minister consider that there is a need for any further changes in relation to existing terms?
I would not like to make any statements today in the House as to exactly what changes will be made or if changes are required.