Written answers

Tuesday, 11 March 2014

Department of Communications, Energy and Natural Resources

Offshore Exploration

Photo of Robert DowdsRobert Dowds (Dublin Mid West, Labour)
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302. To ask the Minister for Communications, Energy and Natural Resources the number of offshore drilling licences at present; and if he will make a statement on the matter. [11688/14]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I can to confirm that there are no drilling consents extant in respect of the Irish offshore. There are 27 petroleum exploration licences extant in respect of the Irish offshore and it is expected that the holders of at least one of these licences will submit a drilling consent application to my Department during the course of 2014.

Photo of Robert DowdsRobert Dowds (Dublin Mid West, Labour)
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303. To ask the Minister for Communications, Energy and Natural Resources the amount it costs on average for an oil-gas exploratory drill. [11689/14]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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The cost of drilling an offshore exploration well is determined by a number of factors including the market rate for drilling rigs, duration of the well programme, water depth and remoteness of location. Exploring offshore the west coast of Ireland is expensive relative to other petroleum producing areas due of its remoteness and deep water depths. For example, in the Atlantic Margin water depths are 7-8 times greater than that of the North Sea. This is reflected in the cost of drilling a single deep-water well in the Atlantic, which can be expected to cost in excess of €100m.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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304. To ask the Minister for Communications, Energy and Natural Resources if he has selected the consultants to conduct the review of Ireland's licensing and tax regime for oil and gas resources; the names of the consultants; the way they were selected; and if he will make a statement on the matter. [11697/14]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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305. To ask the Minister for Communications, Energy and Natural Resources the position regarding his planned review of the tax and licensing regime for Ireland's oil and gas resources; and if he will make a statement on the matter. [11698/14]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 304 and 305 together.

On 23 December 2013 my Department commenced a tender process in accordance with EU procurement requirements for the "Provision of Expert Advice on Oil and Gas Exploration, Development and Production Fiscal Terms". There was a good response to the tender and in February 2014 Wood Mackenzie was chosen as the successful tender.

The contract was awarded on the basis of the most economically advantageous tender. The following award criteria were applied:

- Price;

- Demonstrated understanding of the nature and requirements of the assignment as set out in the Request for Tender (RFT);

- Comprehensiveness and quality of the proposal to fulfil the assignment as set out in the RFT;

- The qualifications and expertise of the team assigned;

- Project management plan showing tasks that will be carried out and by whom and the timescale for completing such tasks within the required time.

Wood Mackenzie who have considerable experience in providing fiscal advice to a broad range of clients, including governments, have now commenced their work and I look forward to receiving their expert advice in due course.

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