Joe Sherlock
Ceist:9 Mr. Sherlock asked the Minister for Energy if Marathon have completed the ten test wells which they promised in 1988 would be drilled in Irish waters; the results of the drillings; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Offshore Exploration.
Under an agreement concluded in November 1988, Marathon undertook to drill up to ten exploration wells in the period to end 1991. Of this number, five are obligation wells with the remainder being contingent on the identification of additional drillable prospects within Marathon's leased acreage.
As of 1 January 1991, Marathon have drilled four exploration wells and a further well is scheduled to be commenced shortly. My Department are in discussion with the company concerning the completion of the full programme. Of the wells drilled to date as a result of the 1988 agreement only one has been assessed so far as having located hydrocarbons capable of being commercially recovered. This was the 48/20-2 well which located the Ballycotton gas field. Development of this field is now underway and I anticipate its being brought on stream later this year.
May I ask the Minister if he has received information on the discovery of 48/24-3 which is 16 miles south west of Kinsale Head and is reported to have a gas showing way above that in Ballycotton? Marathon closed down that well without assessment but I understand an assessment has been carried out since. Has the Minister received any information in regard to that find?
The 48/24-3 well produced oil and gas shows. This well was drilled at the Seven Heads structure about 18 miles from Kinsale Head gas field, to a total depth of 8,475 feet in a water dept of 331 feet. The well was flooded on 16 January 1990 and was temporarily plugged and abandoned on 30 April 1990. Four intervals were tested and the well produced oil at a flow of about 1,620 barrels per day on a half inch choke and produced an accumulative amount of gas of about 5.4 million cubic feet per day. These results do not amount to indicating commercially recoverable quantities of oil and gas.
I do not wish to over-pursue this matter, but is it not true that Marathon did not carry out the normal assessment procedure, which would lead to flaring, in order to discover the extent of the find? Did their procedure not relate to pressure rather than to the flaring process? Has the Minister any information particularly in regard to the gas discovery which is understood to be very considerable? Apart from the information that has been received from Marathon, has the Minister pursued the matter to discover precisely what they are doing?
In accordance with the terms of the lease my Department examine closely the results of drilling programmes and they are satisfied that the proper procedures were carried out by Marathon. As I have indicated to the Deputy, the results of the drilling that took place in this area did not indicate what we consider to be commercially recoverable quantities.
Will they complete their promised programme in 1991?
I indicated in my reply what the promised programme is.
Will they complete it?
As indicated in the reply, that will be carried out.
Are the Department dependent on Marathon engineers to supply that information or is there a departmental presence on these oil rigs when testing takes place?
Yes, we do.