Seán Kyne (Galway West, Fine Gael) | Oireachtas source

I move amendment No.12:

In page 35, lines 21 and 22, to delete all words from and including “provide” in line 21 down to

and including line 22 and substitute the following:“not enter into a joint venture agreement unless—

(a) at least 10 days before entering into the agreement, the licensee notifies the

Minister and provides the Minister with a copy of the draft agreement, and

(b) on entering into the agreement, the licensee notifies the Minister and provides the

Minister with a copy of the agreement within 10 days after it comes into effect.”.

This is a technical amendment which requires that the licensee notify the Minister of a proposed joint venture agreement at least ten days before it is entered into by the licensee. Joint venture agreements are commercial arrangements between licensees and other potential investors to allow access to further funds for exploration. Typically, the incoming joint venture partner earns by funding or undertaking further exploration and if the project continues, they will be assigned a portion of the licensee's rights and obligations. It has always been Government policy to encourage joint venture agreements in order to maximise potential further discoveries. However, nothing in any such agreement can supersede or supplant the Minister's right to reduce the liabilities of the licensee. Nevertheless, it is considered appropriate that the Minister is aware of the agreement in advance and that officials will be able to advise the licensee on provisions in the agreement that may present difficulties in the future. As originally drafted, the section did not allow for advance scrutiny of joint venture agreements. Unless the joint venture results in an assignment, which can only take place with the written consent of the Minister under seal, the licensee will continue to be responsible for all obligations under the licence, notwithstanding any other agreement entered into by the licensee with third parties.