Written Answers. - Offshore Exploration.
Bernard J. Durkan
Ceist:
42
Mr. Durkan
asked the
Minister for the Marine and Natural Resources
whether commercial oil or gas prospects have been found on or off shore; whether there have been any positive indications in relation to other formal mineral deposits; whether sufficient exploration is taking place to sufficiently advance the mineral exploration programmes; and if he will make a statement on the matter.
[16227/98]
First, in regard to oil and gas, offshore gas is being produced from two fields located about 30 miles offshore Cork, in the Celtic Sea. The Kinsale Head gas field was discovered by Marathon in 1971, declared commercial in 1973 and went into production in 1978. The Ballycotton gas field was also discovered by Marathon in 1989 and production from there commenced in 1991.
The Deputy may be aware that I recently approved the issue of a petroleum lease to Providence Resources over the Helvick Oilfield in block 49/9 in the North Celtic Sea. While this is a marginal field, a potential for commercial development has been established and it merited the granting of a petroleum lease. Providence Resources now has two years to submit a field plan of development for my approval.
In 1996 Enterprise Oil discovered gas in a well drilled in the Slyne Trough but despite their best efforts they were unable to test this discovery because of mechanical problems. They are now about to start an appraisal well on this prospect and expect to remain on location for about two and a half months. Since exploration offshore began in 1970 there have been many instances of oil and gas being produced from exploration wells on test but none of these have proved to be commercial.
We now have a high number of petroleum exploration licences in place. At present 26 licences are held and each carries a specific work programme appropriate to the area held under licence. The high number of licences is a result of the revised licensing terms introduced in 1992, the consequent licensing rounds in 1994, 1995 and the most successful of all, the Rockall Trough licensing round last year, which gave rise to 11 new licences.
In addition, an area covering 156 blocks in the South Porcupine Basin is now the subject of a licensing round, the closing date for which is 15 December this year. I expect to be in a position to announce the results and award the licences early in the second quarter next year. This will give successful applicants the opportunity to acquire seismic data during the suitable weather window period of 1999.
Apart from licensing rounds held from time to time over specified areas, an open-door system is also in operation whereby applications may be made at any time to my Department for offshore acreage which is not closed or already held under any authorisation.
Last year 25,874 line kilometres of 2D seismic and 470 square kilometres of 3D seismic were acquired and that was a record for seismic acquisition in Ireland. Plans from seismic companies for 1998 indicate that it also will be a good year for seismic acquisition.
In regard to the onshore, two licensing options are held over the North West Carboniferous Basin. The licensees have undertaken a work programme over the area to assess the potential for gas accumulations in the area.
In regard to the onshore minerals there is also an ongoing programme of exploration for non-petroleum minerals by holders of prospecting licences (PLs) under the Minerals Development Acts, 1940 to 1995. There are approximately 400 of these PLs current at present covering 30 per cent of the country and focused on a wide range of metallic, precious and industrial minerals. Where an economic deposit is identified it will normally result in an application for a State mining facility in parallel with the application for planning permission and integrated pollution control licence. There are currently 16 such facilities being worked. Explorationists for these minerals expend approximately £7 million per annum in this country and we have successfully maintained this level of investment in the face of huge worldwide competition for exploration funding.
