Two wells are planned to be drilled in our offshore area during the 1993 drilling season. Aran, in partnership with Mobil, plan to spud a well in block 50/12 in the North Celtic Sea in the summer of this year, depending on rig availability. Marathon will also drill a well before the end of the year. The specific location of this well has yet to be decided by the company.
The provisions of the Finance Act, 1992, relating to petroleum exploration together with revised licensing terms for oil and gas exploration and development which were issued in November 1992 are designed to attract additional exploration investment to Irish waters. At this stage it is too early to see the effects of these changes in terms of exploratory drilling but it is significant that three new licences have been agreed with groups of companies to explore in our offshore area. Each of these licences will involve a commitment to drill one exploration well during the first phase of the licences and further wells if the acreage is retained.
Since last year, there has been a considerable increase in the volume of inquiries to my Department from oil companies who are looking towards Ireland as an exploration location. The industry has given a positive reaction to both the tax revision and the new licensing terms and the indications are that this new regime has been favourably received. We are confident, therefore, that in time we will see an even greater increase in activity as a result of these new measures.