Dáil Éireann Debate, Thursday - 20 May 2010
198 Deputy Enda Kenny asked the Minister for Communications, Energy and Natural Resources if any onshore exploration licences have been granted since 2007; if he expects to grant new licences in the near future; the tax treatment that will be applied to new licences for onshore drilling and extraction; and if he will make a statement on the matter. [21255/10]
Amharc ar fhreagraNo petroleum authorisations in respect of the Irish onshore have been granted by my Department since 2007. The last onshore authorisations were two Onshore Petroleum Exploration Licences granted in 2005 and those licences have now expired.
In March of this year, I announced a competition for Onshore Licensing Options over areas in the North West Carboniferous Basin and in the Clare Basin. The acreage on offer covers an area of approximately 8,000 square kilometres over parts of counties Cavan, Donegal, Leitrim, Mayo, Monaghan, Roscommon and Sligo in the North West Carboniferous Basin and parts of counties Clare, Cork, Limerick and Kerry in the Clare Basin. The closing date for receipt of applications is Friday 11th June 2010.
Licensing Options, if any, awarded as a result of this competition will be for a maximum period of two years and will be subject to an agreed work programme, which will not include exploration drilling. At the end of the Option period, the holder must apply for a Petroleum Exploration Licence or surrender the acreage.
Should exploration under a Licensing Option, or under any subsequent Exploration Licence, lead to a commercial discovery, the 2007 Licensing Terms for Oil and Gas Exploration, Development and Production will apply. The 2007 Terms provide for a profit resource rent tax of up to 15% in addition to the 25% corporate tax rate currently applying and will ensure a return to the State of up to 40% in the case of more profitable fields.
