Brendan Smith (Cavan-Monaghan, Fianna Fail)

In the unavoidable absence of the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, I will update the House on the review of the Corrib gas field developers' quantified risk assessment, QRA, for the onshore pipeline.

The Department of Communications, Marine and Natural Resources awarded the contract after a tendering process. Tenders for the QRA review were invited from four companies with the requisite competencies. One declined because it had worked on the Corrib gas field project previously. Two others declined, due to the unavailability of the consultant during the timeframe within which the work to be carried out was scheduled. The contract was awarded to British Pipeline Agency Ltd., BPA, which was the only company to submit an offer of tender. BP Ireland UK Ltd. and Shell UK Oil Ltd jointly own BPA. BPA is defined as a subsidiary undertaking of BPLC. The tender was received on 4 April 2005 and a draft contract issued to BPA on 6 April 2005.

At no stage in any discussions with the Department did BPA raise the issue of any potential conflict of interest in carrying out this review. Notwithstanding that BP Oil UK Ltd. and Shell UK Oil Ltd. own the company jointly, BPA remains of the view there is no conflict of interest and states:

BPA is a leading UK specialist in the onshore oil and gas pipeline sector, managing pipeline and terminal assets, and providing related technical consulting services to a wide range of companies worldwide.

All work undertaken by BPA is treated as client confidential whether acting for a single client company or a consortia, and the ability to maintain client confidentiality is critical to BPA's continuing business success.

In this instance BPA were "peer reviewing" technical work undertaken by another pipeline consultant for Shell, against accepted industry codes and standards.

The Minister accepts fully that BPA has completed the review in a fully professional and objective manner. However, he remains conscious that the association of Shell UK Oil Ltd. with BPA by means of its 50% ownership of the company will raise questions as to the complete independence of the QRA review process. In the interest of ensuring confidence in the independence of the process of evaluation of the safety aspects of the pipeline as addressed by the QRA version F and considering the public concerns and sensitivities on this issue, the Minister has now initiated a further review of the QRA.

With regard to the Corrib gas field terminal, I do not agree that the only option available in the interest of the health and safety of the Erris residents is an offshore terminal. I am satisfied the Department has given every consideration to relevant aspects of recommending the placing of the terminal onshore. In any case, there is no question of withdrawing any approvals already given.

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