Written answers
Thursday, 23 November 2006
Department of Communications, Energy and Natural Resources
Offshore Exploration
5:00 pm
Enda Kenny (Mayo, Fine Gael)
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Question 191: To ask the Minister for Communications, Marine and Natural Resources the model adopted or to be adopted by his Department in the event of further hydrocarbon finds being proven in the Atlantic margin, assuming that such gas finds in particular might use infrastructure in place to bring the Corrib reserves ashore; and if he will make a statement on the matter. [39853/06]
Noel Dempsey (Meath, Fianna Fail)
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The model used in the event of a commercial discovery in the Irish offshore is set out in the 'Licensing Terms For Offshore Oil and Gas Exploration And Development 1992'.
Before a licence holder develops a commercial discovery, a Petroleum Lease must be applied for and granted. Within two years of the date of issue of a Lease the lessee is required to submit a detailed plan of development for my approval. An Environmental Impact Statement of the likely effects of the development on the environment is also required.
The methodology for the development of a field depends on several factors including the estimated size of the reservoir, the location, depth of water, distance from shore and the availability of existing infrastructure such as platforms, pipelines and terminals. The methodology chosen is a matter for the operator and my role is to ensure that development proceeds in a safe and efficient manner.
In relation to the Corrib infrastructure, it was recommended in the Independent Safety Review of the onshore, upstream section of the Corrib Gas Pipeline carried out by Advantica Ltd and which I published on 3rd May 2006, that: "In the event that additional fields were proposed to be tied in to the pipeline at any future date, a full review would be required to consider issues such as extension of the life beyond the initial design life, changes in the fluids in the pipeline or changes in the operating pressures".
As regards fiscal terms, any future discussions under existing licences will be subject to the terms under which the licences were offered. Any future new licences will bear whatever terms emerge from current review.
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