Michael D Higgins (Galway West, Labour)
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Question 172: To ask the Minister for Communications, Marine and Natural Resources the way his Department assesses the latest claims by offshore exploration companies which seem to indicate a very bright future for the industry in extracting Ireland's offshore oil and gas reserves; when he expects to receive the Indecon report on the review of Irish mineral and offshore licensing; and his plans to change the oil and gas licensing regime here. [38834/06]

Noel Dempsey (Meath, Fianna Fail)
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I am unclear as to what claims made by offshore exploration companies the Deputy is referring to. My Department, however, presented a paper at its conference in Dublin earlier this month on "Exploring Atlantic Ireland" which referred to the fact that the Irish offshore is under-explored although an assessment of resource potential would indicate that this could be in the region of 10 billion barrels of oil equivalent (BBOE).

Though these figures look promising, I have to be realistic and am aware of the high cost involved in exploring for hydrocarbons in the deep waters of the Atlantic. Ireland may describe its prospectivity in the Atlantic Margin in terms of potential whereas in other provinces such as the UK and Norway their prospectivity is described as 'proven'. The paper mentioned above gave an honest assessment of what may be found offshore Ireland, but we need the industry to undertake the high-cost and high-risk activity of exploration to find these potential hydrocarbons.

In relation to the licensing terms under which offshore exploration companies operate in this country, my Department is currently undertaking a review of the licensing regime. Indecon International Economic Consultants has been engaged to assist my Department in this regard and is due to report to my Department by the end of this month.