Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 367: To ask the Minister for Communications, Energy and Natural Resources if he will indicate current proposals for oil and gas exploration off the Irish coast in 2011 and 2012; and if he will make a statement on the matter. [15743/11]

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

There are twenty-one exploration licences and five licensing options active in the Irish offshore. Exploration activities under these authorisations are ongoing and subject to the performance of agreed work programmes including detailed reporting and the release of exploration data and evaluation reports to my Department.

My Department has approved two seismic surveys to date in 2011 and a decision on a third is expected shortly. In relation to drilling, my Department is aware that plans are being advanced for exploration/appraisal drilling in the Irish offshore, although no application for drilling approval has been received to date this year. I would expect that over the next few months greater certainty will emerge in relation to potential drilling in 2011 and 2012.

A total of 15 applications were received by the closing date for the 2011 Atlantic Margin Licensing Round and evaluation of these applications is underway. The Round is deliberately structured to attract new exploration companies to Ireland and also aims to encourage companies to look at areas of the Irish offshore where little data currently exists and as a consequence, little is known of the potential prospectivity of these areas. The licensing round is expected to bring a new momentum to the level of exploration activity offshore Ireland.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 368: To ask the Minister for Communications, Energy and Natural Resources if he is examining the current exploration licensing regime for oil and gas; his views whether changes should be made to the most recent rules implemented by former the Minister, Eamon Ryan, to increase potential revenue for the State; if there is merit in reverting to the Justin Keating exploration regime to maximise benefits to the Irish people; and if he will make a statement on the matter. [15744/11]

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

The 1975 terms were introduced at a time of great optimism that Ireland had significant, undiscovered, reserves of oil and gas and would be the next North Sea. The terms reflected this optimism and provided for State participation, royalties, production bonuses and the then prevailing corporation tax rate of 50%. Unfortunately, with only four commercial finds of natural gas in Irish waters to date, the optimism of the 1970s has proved to be unfounded.

Ireland competes with other countries, both in Europe and much further afield, to attract mobile international exploration investment. The revisions to the licensing terms since 1975 have reflected this reality and have sought to incentivise exploration in the Irish offshore. While I will keep the licensing terms, both fiscal and non-fiscal, under review in light of relevant future developments, at this point in time I believe that the focus should be on attracting a larger share of mobile international exploration investment to Ireland, to increase the chances of new commercial discoveries being made.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 369: To ask the Minister for Communications, Energy and Natural Resources if he sees a key role for An Bord Gáis and ESB Electric Ireland in the exploration of Ireland's onshore and offshore mineral resources; and if he will make a statement on the matter. [15745/11]

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

The primary role of Bord Gáis Energy and ESB Electric Ireland is in electricity generation and in the supply of energy to end users. ESB and Bord Gáis Éireann also own the electricity and gas transmission and distribution networks. The Energy State Companies do not have nor is it envisaged that they would have any role in the exploration of Ireland's onshore and offshore mineral resources.