Dáil Éireann Debate, Wednesday - 12 October 2005
96 Mr. G. Murphy asked the Minister for Communications, Marine and Natural Resources the number and location of oil, gas or other mineral discoveries identified on or offshore in the past ten years; the commercial value or nature of such finds; the intentions for their future development; and if he will make a statement on the matter. [28008/05]
Amharc ar fhreagra285 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the number and location of oil, gas or other mineral discoveries identified on or offshore in the past ten years; the commercial value or nature of such finds, the intentions for their future development; and if he will make a statement on the matter. [28162/05]
Amharc ar fhreagraI propose to take Questions Nos. 96 and 285 together.
Since 1996 there have been offshore petroleum discoveries or "shows" at four locations: the Corrib discovery in 1996 in the Slyne-Erris Basin west of Ireland; the Seven Heads Field, originally discovered in 1984 but declared commercial in May 2002; the Connemara discovery in 1997 in the North Porcupine Basin west of Ireland; and the Dooish discovery in 2002 in the Erris Basin. Of these only the Corrib and Seven Heads were declared commercial five years ago. Since then the Seven Heads Field has experienced serious production difficulties and is producing at a fraction of the level originally planned. Given these difficulties any estimate on its commercial value is meaningless. The value of the Corrib Gas Field is tentatively put at €3.67 billion. While this is lower than the current price I point out the difficulty of predicting prices for 15 to 20 years into the future. The Connemara and Dooish discoveries have not been declared commercial.
On the development aspect of discoveries, Seven Heads is already in production albeit at a very reduced level. The development of the Corrib continues and the Deputy will be aware of the difficulties there. I point out that the Corrib gas was discovered in 1996 and will not start production until 2007 or even 2008 at the earliest — 11 or 12 years later.
No new economic deposits of non-petroleum minerals have been discovered in the past ten years. There have been some encouraging results, however. Exploration adjacent to existing base metal mines at Navan, County Meath — New Boliden Tara Mines Limited — and Galmoy, County Kilkenny — Arcon Mines Limited — has discovered additional resources which have the potential to extend the life of those mines. I have recently granted new State mining licences to Arcon for extraction of part of these additional resources and my officials are currently in discussions with New Boliden Tara Mines Limited on the terms for new facilities to extend the underground workings to the south-west and north of the existing operation. Details of all current leases and licences for extraction of minerals, including royalty terms, are included in the six monthly report laid before the Oireachtas under the Minerals Development Acts 1940 to 1999. The value of these deposits to the companies concerned is a matter of commercial confidentiality. However, I expect that substantial royalties will be paid to the State on foot of these discoveries.
A good zinc prospect area near Pallas Green, County Limerick also has the potential to host an economic deposit. Exploration is continuing but it is too early to say whether it will prove an economic deposit.
The acid test of commerciality with any new discovery is that having made a find, the explorationist is then prepared to invest in planning for mining and therefore makes the necessary applications for permits to me, the relevant local authority and the EPA, and can raise the substantial funds required to bring a mine into production.
