Alan Shatter (Dublin South, Fine Gael)
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Question 263: To ask the Minister for Communications, Energy and Natural Resources the estimates made as to the extent of the gas field off the shores of County Mayo that a company (details supplied) is licensed to exploit; the studies undertaken regarding same; the number of years supply of gas estimated to be contained in the field and if he will give details of the financial arrangements with the company regarding the bringing ashore and exploitation of this gas field. [29136/10]

Conor Lenihan (Dublin South West, Fianna Fail)
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The Corrib gas field is estimated to contain approximately 1 trillion cubic feet of natural gas reserves. Actual reserves, which are not expected to vary greatly from this figure, will not be known precisely until late in the field's lifetime after a considerable amount of historical production data has been collected. The initial volumetric studies to determine the reserves of gas in the field were carried out by the former operator, Enterprise Energy Ireland Limited and have since been updated by the current operator. These studies have been audited by the Department.

Based on the estimated reserves, total production of gas over the life of the Corrib gas field, would equate to approximately five years annual consumption of gas at Ireland's current level of consumption. Production of gas will peak in the early years, where it is estimated by the Commission for Energy Regulation that the Corrib gas field would meet in the region of 60% of Ireland's annual demand for natural gas.

The principal financial return to the State from the Corrib gas field will be through the tax system. A special rate of corporation tax applies to profits from the production of oil and gas and in the case of the Corrib gas field profits will be liable to tax at a rate of 25%.