John Browne (Wexford, Fianna Fail)

Five applications were received for frontier exploration licences in the recent Slyne-Erris-Donegal licensing round which closed on 15 March. These applications were from Statoil Exploration (Ireland) Limited with Shell E. & P. Ireland Limited as a partner, Serica Energy (UK) Limited, Grianan Energy Limited and two applications from Island Oil & Gas plc with Lundin Exploration BV and Endeavour Energy (UK) Limited as partners. A total of six full blocks and ten part-blocks were applied for under the licensing round. These applications are being considered by officials of the Department. Awards of licences are not expected to be announced until early June.

The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, and I are pleased with the response to this licensing round and hope that it will, in time, lead to new petroleum discoveries. In Ireland, we import 80% of our natural gas requirements and 100% of our oil requirements. It is therefore extremely important that we try to reduce or eliminate this high level of dependency on petroleum imports. For that reason we need to continue promoting and encouraging petroleum exploration in Ireland.

Ireland's terms are kept under constant review by the Department in light of the international market in which Ireland seeks to attract exploration companies. Ireland has yet to make the breakthrough needed to establish its prospectivity. The awards to be made under the current round will be issued under the 1992 licensing terms. When this round has been completed, the Minister, Deputy Noel Dempsey, will turn his attention to the question of whether the 1992 licensing terms remain appropriate in this age of high gas and oil prices and the emerging tight supply position in Europe.

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