Joe Costello (Dublin Central, Labour)
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Question 83: To ask the Minister for Communications, Marine and Natural Resources if, in view of the signing of an agreement between companies (details supplied) to explore the Dunquin project in the Porcupine Basin and the other reported major discovery in the County Sligo region, he will bring forward measures to change the licensing and regulatory regime for the exploration and exploitation of natural resources here; and if he will make a statement on the matter. [6705/06]

Noel Dempsey (Meath, Fianna Fail)
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The Dunquin prospect is situated in the Porcupine Basin off the south west coast. The acreage in which this prospect lies is currently held by Providence Resources plc and Sosina Exploration Limited under frontier exploration licence 3/04. Although this prospect looks promising, there is still a substantial amount of work required to establish the extent of the hydrocarbons in place and whether such hydrocarbons can be commercially exploited.

Similarly, in relation to the two onshore petroleum exploration licences in the north west, more work will be required before commerciality can be established. The history of this resource may be summarised. Gas was first discovered in the 1960s by Marathon which found it uneconomic to develop and subsequent exploration-appraisal efforts were made in the 1980s by Aran Energy and the early 2000s by Evergreen Resources Inc with similar unsuccessful results. Evergreen has a strong track record in developing similar gas basins. It drilled two wells of a planned three, then relinquished its licence. Neither of these events constitute a discovery let alone a commercial find.

In these circumstances, I see no basis to change the present terms governing petroleum exploration and development in Ireland and its offshore. However, these terms are kept under constant review by my Department in light of the international market in which Ireland seeks to attract exploration companies.