Dáil Éireann Debate, Wednesday - 7 March 2012
18 Deputy Richard Boyd Barrett asked the Minister for Communications, Energy and Natural Resources if he will confirm that under the existing licensing regime there is no obligation on Providence Resources, in the case of the so-called Dalkey Island project, or any other oil or gas exploration project in the event of going into production of either gas or oil to supply the Irish State. [12847/12]
Amharc ar fhreagra21 Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources if he will confirm that under the existing licensing regime there is no obligation on Providence Resources, in the case of the so-called Dalkey Island project, or any other oil or gas exploration project in the event of going into production of either gas or oil to supply the Irish State. [12892/12]
Amharc ar fhreagra24 Deputy John Halligan asked the Minister for Communications, Energy and Natural Resources if he will confirm that under the existing licensing regime there is no obligation on Providence Resources, in the case of the so-called Dalkey Island project, or any other oil or gas exploration project in the event of going into production of either gas or oil to supply the Irish State. [12894/12]
Amharc ar fhreagraI propose to take Questions Nos. 18, 21 and 24 together.
Standard Exploration Licence 2/11 was granted last year to a consortium comprising Providence Resources Plc and Star Energy Oil and Gas Ltd over an area of approximately 380 square kilometres in the Kish Bank Basin off the coast of Dalkey, County Dublin. The exploration licence is for a six year period with an obligation to drill an exploration well during the first three years. Exploration activity under this licence is at an early stage and it is far too early to anticipate a discovery that might lead to a petroleum production project.
While there is no legal obligation on exploration companies to sell oil or gas discovered in the Irish offshore into the Irish market, this is consistent with international practice. A combination of practical factors and market forces would dictate that where a local demand exists, a commercial discovery of natural gas, that is to be processed onshore, will be landed and sold locally to ensure maximum recovery of gas from the gas field and to avoid attracting the cost of transport tariffs. It is also worth noting that the Interconnectors between Scotland and Ireland are not currently engineered for reverse flow. In relation to a possible future oil discovery, the factors which will influence the development alternatives and a decision on where to land the oil will include the size of the discovery, the nature of the oil and where it could be refined.
