Ivor Callely
Ceist:112 Mr. Callely asked the Minister for Energy if he will make a statement of the current oil and gas exploration off the Irish coast.
Written Answers. - Oil and Gas Exploration.
I refer the Deputy to the report in accordance with section 57 of the Petroleum and Other Minerals Development Act, 1960 for the six months ended 30 June 1991 laid before the House on 11 September, 1991. As of 1 November 1991, a total of 37 blocks are held under petroleum leases, 12 blocks or part blocks are held under petroleum exploration licences and 30 blocks or part blocks are held under licensing options.
My Department have recently reached agreement with Marathon Petroleum Ireland, Limited, on a new programme of exploration under which a total of seven wells will be drilled by the company in the period 1992 to 1996. The first of these wells will be drilled in 1992. During 1991 one exploration well was drilled in the Irish offshore. At this stage it is not possible to be specific about the number of wells which will be drilled during the coming year as discussions are continuing with companies.
Taking a slightly longer view, I am hopeful that a number of initiatives to be taken by the Government in early 1992 will result in intensified exploration activity offshore Ireland in subsequent years. Comprehensive petroleum taxation legislation will be introduced in the Finance Bill, 1992, which, when enacted, will make good a substantial and longstanding deficiency in the overall regime applicable to hydrocarbons exploration and production offshore Ireland. We have never brought petroleum taxation measures into law and I believe that uncertainty in this area has militated against Ireland when companies carry out comparative assessments in the context of targeting exploration investment.
In tandem with the introduction of petroleum taxation legislation, my Department are undertaking a complete review of Ireland's offshore licensing terms. The purpose of this exercise is to identify and make the changes necessary to ensure that our terms reflect today's circumstances and conditions and meet modern requirements. I expect to be in a position to announce the new terms in early 1992 also. Taken together, I believe that both these tax and term initiatives will enhance Ireland's image as an attractive location for hydrocarbons exploration and will encourage a greater level of exploration activity. Only by stimulating and encouraging greater industry interest in this way can we hope to secure for the Irish people the benefits which would rise from finding and developing further hydrocarbon reserves off our coasts.
In addition I have already announced a "frontier" licensing round for mid-1993, concerning acreage in the Erris and Slyne Trough areas. This is deep-water, challenging acreage for the industry but my Department and I feel it has potential which warrants further investigation. I am heartened by the level of up-take of a technical report on the Erris and Slyne Trough areas which has recently been published by my Department with a view to assisting the industry in the context of decisions relating to the 1993 round.