Vol. 577 No. 4
31 Mr. Wall asked the Minister for Communications, Marine and Natural Resources the information available to him on the results of oil and gas exploration in Irish waters during the summer months; and if he will make a statement on the matter. [31272/03]
I refer the Deputy to the Minister's replies to identical Questions Nos. 159 of 7 October 2003 and 181 of 11 November 2003.
The Dooish exploration well, which was drilled last year by Enterprise Energy Ireland off the Donegal coast and which discovered a hydrocarbon accumulation, was re-entered and deepened this summer. Drilling commenced on 11 May 2003 and the well was plugged having confirmed the existence of a substantial gas condensate column. The rig will move off-site on 30 July 2003. Both my Department and Shell-EEI are continuing to analyse the well results and integrate them with other data from the area. Further technical work on the projects will be required before the size of the gas condensate accumulation and the possibility for any commercial development can be accurately assessed. However, it is extremely encouraging that this well, only the second to be drilled in the Rockall Basin, proved to be such a significant discovery. My Department has emphasised the positive implications of this discovery for the prospectivity of the basin as a whole.
No further oil or gas exploration occurred during the summer months of this year. Statoil Exploration Ireland has plugged and abandoned its exploration well off north-west Ireland. Data from the well will now be integrated with the data acquired in the vicinity to ascertain the implications for further exploration work in the licence area.
There have been three seismic surveys carried out offshore this year, all off the west coast. However, one of these surveys was abandoned following damage to equipment. The results of the surveys are not yet available due to the highly technical processing required for this type of data.
What is the general pattern of exploration offshore during the lifetime of the Government? One gets the impression there is less activity each year. The Minister of State and the Minister, Deputy Dermot Ahern, made a statement a few months ago on changes to the terms and conditions in order to stimulate this activity.
The Minister of State referred to the three seismic surveys, one of which broke down. What independent knowledge has the State of the resources off the north-west shelf in particular? The Minister of State said in the past that up to 60% of our gas supplies for two decades may come from the Corrib field area. There is also the Cong exploration. This is a significant discovery which may impact on our discussion on alternative energy and the energy security of the country. What attention is being paid to this aspect? The Minister of State will note that there has been significant adverse comment in the media recently, and by representatives of workers, on the extraordinary terms and conditions that apply whereby no royalties are payable by companies, there are no production levies, the only tax return to the State is the 25% corporation tax and the number of Irish workers directly involved in these explorations.
Given that there are positive vibes coming from recent activity, is it time to consider a new regime and to carry out an independent examination of the resources of our country and the coastal shelf?
The number of exploration licences and, correspondingly, the level of exploration activities, including drilling, has declined in recent years. The current low level of exploration activity reflects this decline. This is not just happening in this country but throughout Europe and the world. However, 2003 has seen six wells drilled on the Seven Heads for appraisal, development and production purposes. Deputy Coveney will be aware that Ramco began production during the week. This is a worthwhile project for the Cork area from the point of view of employment and continuity of supply.
A recent study of the Porcupine region concluded that the region had an active hydrocarbon system in the Connemara discovery which proved to be uncommercial. The region is largely underexplored, with low drilling density and a large basin. The 3D seismic coverage of the region is sparse and 2D seismic data quality varies. A large number of leads and plays were identified of which less than 10% have been drilled. The basin has untapped reserve potential and regions of prospectivity have been identified.
The lack of royalties and tax concessions introduced a few months ago have not encouraged a worthwhile response from companies who want to carry out explorations in Ireland. The Deputy suggested that we should look at the system, and I have no problem with that. There is not a mad rush of companies coming to Ireland to spend their money.
There were planning problems for the Corrib field, which is one of the major fields. The company appealed to An Bord Pleanála and was rejected. I understand the company may be about to resubmit a new planning application.
The biggest energy consumer in the world controls the second biggest resource in the world, namely, Iraq. Is there not a sense that this market operates on a global scale. Ramco, for example, has interests in Azerbaijan. Shell Enterprise has interests off our coast and down the African coast. Is it possible that companies could effectively store our reserves until they have exhausted reserves which are easier to get out of the ground?
I have no evidence that is the case.
