Michael Ring (Mayo, Fine Gael)
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Question 1520: To ask the Minister for Communications, Energy and Natural Resources the value of an area (details supplied) in County Mayo. [30557/08]

Eamon Ryan (Dublin South, Green Party)
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Based on estimated recoverable reserves between 800-900 billion cubic feet, applying the recent market price for gas and allowing for an increase in line with CPI it is estimated that the total value of the Corrib Gas Field will be in the order of €9.5 billion.

The value of the Corrib Gas Field will depend on a combination of factors including, the volume of gas in place, the cost of developing the infrastructure to produce that gas together with the ongoing cost of operating that infrastructure and the price of gas over the life of the field. It will be appreciated that each of these parameters is subject to significant variation and that the timing and profile of production would also have an impact. This calculation is also based on an historically high gas price.

In relation to the tax revenue to be generated from the Corrib Gas Field, profits from the field will be subject to Corporation Tax at a rate of 25%. Based on an assumption that the combined development and production costs will be close to €3 billion then the tax revenue from the Corrib field would be in the order of €1.7 billion.

The Corrib Gas Field will strengthen Ireland's security of energy supply and at peak production will provide over 50% of Ireland's gas needs. By providing an additional gas supply source for the market in Ireland, the Corrib Gas Field could also help bring down gas prices for consumers in Ireland.

During its development phase the Corrib Project has contributed significantly to creating employment, both in the Erris region and nationally, with up to 700 people working on the construction of the terminal at Bellanaboy.