Dáil Éireann díospóireacht -
Wednesday, 21 Mar 2001

Vol. 533 No. 1

Written Answers. - Offshore Exploration.

Liz McManus

Ceist:

34 Ms McManus asked the Minister for the Marine and Natural Resources the latest information available to his Department on the likely extent of test drilling for oil and gas in 2001; and if he will make a statement on the matter. [8126/01]

Minister for the Marine and Natural Resources (Mr. Fahey)

As I mentioned in my reply to a similar question raised in the House on 8 February, there will be a substantial increase this year in offshore drilling activity with at least three exploration wells, one appraisal well and two development wells being drilled. However, well commitments beyond 2001 amount to only between three and six for the entire Irish offshore. With this in mind, I commenced an initiative aimed at both conserving certain areas of the Irish offshore by closing them off from development for the moment and gauging interest on the part of the industry in making well commitments in certain other limited areas. To that end, I have started a consultation process involving companies who are licence holders here to gauge their view on whether well commitments might be forthcoming in the event that a limited number of new licences might be offered and this process is ongoing.

There are 21 offshore exploration licences in place at present compared with a peak of 32 in 1997. Furthermore, a number of exploration com panies granted licences under a licensing round in 1997 have indicated their intention to relinquish these licences this year. Only one exploration well was drilled in the Irish offshore in the last three years, despite the existence of the 1992 terms.

The reality is that Irish prospectivity is low with only three successful exploration wells out of 122 wells in 30 years. The Corrib gas find, although very welcome, cannot be regarded as changing that view. Irish offshore prospectivity is not comparable with, for example, the United Kingdom which has over the same period drilled about 3,000 wells of which about 250 are in production. Also, we are competing not just with the relatively low risk, highly prospective North Sea but also with current development hot spots in north and west Africa, the Gulf of Mexico, Brazil and the Caspian region.