Dáil Éireann Debate, Tuesday - 18 September 2012
493. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if he will provide an explanation for the €2,059,000 payment under the heading of Marathon Petroleum Ireland Limited in the July 2012 Exchequer statement. [38546/12]
Amharc ar fhreagraThe Exchequer statement records that €2.059m was received in royalty payments from Marathon (now PSE Kinsale (Marathon’s operations in the Kinsale field were taken over by Petronas, the Malaysian state-owned petroleum concern, in 2009 and renamed PSE Kinsale)). Under the 1959 Agreement made between the State and Marathon Petroleum, the company pays royalties at the rate of 12.5% of the fair market value at the wellhead of oil, gas or other petroleum substances produced. The level of royalties paid by the company is determined by the quantity of gas delivered to Bord Gáis and the price that the latter pays for it.
