Written Answers. - Exploration Projects.
Bernard J. Durkan
Ceist:
63
Mr. Durkan
asked the
Minister for the Marine and Natural Resources
the position in relation to the mineral, oil, gas and other exploration projects taking place on land and offshore; if he can report encouraging results; and if he will make a statement on the matter.
[3864/00]
With regard to minerals exploration and mining, Ireland has had considerable success in the development of ore bodies in recent years with the opening of two world class lead and zinc mines at Galmoy, County Kilkenny and Lisheen, County Tipperary. Together with Tara Mines Limited full production at these mines will see Ireland ranked seventh in the world for zinc production, and the leader in Europe.
We also have the large Irish gypsum operation at Knocknacran, County Monaghan which produces gypsum to service the needs of all plaster and cement manufacture in the country.
Encouraged by these successes, we will continue to foster a healthy minerals exploration industry in Ireland, and I hope for further discoveries in the future.
Minerals exploration is currently being carried out under some 463 prospecting licences. In the face of strong competition between countries to attract dwindling exploration funds, Ireland has, in recent years, actually bucked the global trend with exploration expenditure increasing by 16% in 1998. The 1999 figures are estimated at no lower than 1998 and the number of current prospecting licences has increased by 15% over 1998.
With regard to oil and gas exploration and development there is a high level of offshore petroleum exploration activity with 22 exploration licences in place covering 119 blocks or part blocks. In addition there are four offshore licensing options and two leases in place. Applications for three further licensing options and one lease undertaking are at present under consideration. Two onshore licensing options are also held over the Northwest Carboniferous Basin.
A plan of development for the southwest lobe of the Kinsale Head gas field was approved last year and the field was brought into production in October. There are important developments taking place in relation to two other hydrocarbon accumulations in our offshore, the Corrib gas accumulation and the Helvick oil field. The position in relation to the Corrib field is that Enterprise Oil and their partners, Statoil Exploration (Ireland) Limited and Marathon International Petroleum Hibernia Limited, have drilled three wells in the Corrib gas accumulation located in the Slyne Trough – an exploration well in 1996 and two appraisal wells, one in 1998 and the second in 1999.
The first appraisal well produced gas on test which flowed at a stabilised rate of 63 million cubic feet of gas per day. The second appraisal well flowed gas at a rate of 64 million cubic feet per day. Evaluation of all the data has continued over the past few months with a view to establishing a location for a further appraisal well which Enterprise will drill this spring. They hope to be in a position to decide whether the Corrib gas field is commercial or not in December of this year.
The final decision as to whether the field is commercial will depend on factors such as the volumes of gas in place, the quality of the reservoir, the quality of the gas, the flow rate of wells, market availability and price and the cost of development of the field.
Should the results of their appraisal programme show that the gas can be commercially produced, it will be necessary for Enterprise Oil to apply to me for a petroleum lease and to submit a plan of development for the field for my approval.
The Helvick oil field is held under a petroleum lease by Providence Resources, who have declared the field commercial. A detailed plan of development for the field is due to be submitted to me for approval by the end of April this year.
