Finian McGrath (Dublin North Central, Independent)
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Question 309: To ask the Minister for Communications, Marine and Natural Resources if he will investigate the case of modelling a State company for Irish oil and gas along the lines of the Norwegian company (details supplied); and if he will make a statement on the matter. [39298/06]

Noel Dempsey (Meath, Fianna Fail)
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The Government do not consider that there is a case for a State company for oil and gas and I would offer the following facts to the Deputy to support that view.

At present Ireland has not established itself as a petroleum province. After 35 years and 123 exploration wells only 4 commercial finds have been made offshore Ireland. Of these one (Kinsale) has almost reached depletion, two (Ballycotton and Seven Heads) are commercial only because of their proximity to the Kinsale production facilities and the fourth (Corrib) is awaiting development. By 1987 Norway had made 60 commercial finds, on average each one significantly larger than the Kinsale Field. Also Norway made its commercial finds in shallow waters which made exploration and development less costly.

Ireland is still an exploration province, with low levels of exploration at that. Its offshore is less prospective than Norway's, its waters deeper and therefore more costly to explore and develop. To put it another way the Irish offshore is a high-cost high-risk exploration environment, where exploration wells cost circa €25-30 million. In the context of these facts the Government is unwilling to risk taxpayers money to establish a State exploration company.