Stephen Donnelly (Wicklow, Independent)
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Question 463: To ask the Minister for Communications, Energy and Natural Resources if, with respect to the payment of corporation tax by operators of oil and gas fields in Irish territory under Ireland's Licensing Terms for Oil and Gas Exploration, Development and Production, as adopted in 1992 and 2007, these licensing terms allow for the operator to write off costs incurred in other countries against their profits to be declared in Ireland; if these licensing terms allow the operator to write off the costs of unsuccessful wells drilled in Irish waters against their profits; and if so, if these licensing terms allow the operator to write off the costs of unsuccessful wells that are outside the licence area of the well on which profit is being calculated against that profit, in each case, in which the 1992 and 2007 terms differ; and if he will state the difference. [25454/12]

Stephen Donnelly (Wicklow, Independent)
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Question 464: To ask the Minister for Communications, Energy and Natural Resources if two hydrocarbon exploration projects currently being undertaken by a company (details supplied) at Dalkey Island Kish Bank and the Barryroe Field, are subject to the 1992 licensing terms or the 2007 terms; and if the former, if he will explain the reason that this is the case. [25455/12]

Stephen Donnelly (Wicklow, Independent)
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Question 465: To ask the Minister for Communications, Energy and Natural Resources if it is the case that the operator of an oil or gas field is allowed a 100% write-off of all exploration expenses incurred in the 25-year period prior to the commencement of field production; and if he will clarify any terms or conditions that apply to this write off. [25456/12]

Stephen Donnelly (Wicklow, Independent)
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Question 466: To ask the Minister for Communications, Energy and Natural Resources if it is the case that under Ireland's 1975 licensing terms for offshore oil and gas exploration, the State would have taken a carried interest in any exploitation of an oil or gas discovery; and if this would have amounted to a 50% share in the project, irrespective of whether the State had shared in the cost of exploration. [25457/12]

Fergus O'Dowd (Louth, Fine Gael)
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I propose to take Questions Nos. 463 to 466, inclusive, together.

The fiscal terms for petroleum exploration and production are set out in the Finance Acts, while the operational frameworks are detailed in the 1992 and 2007 Licensing Terms for Offshore Oil and Gas Exploration and Development. Since 1992 a corporation tax rate of 25% has applied to profits from all oil and gas production offshore Ireland.

In 2007, following a comprehensive review of Ireland's licensing terms, both the fiscal and non-fiscal licensing terms were revised. The revised fiscal terms provided for a new supplementary tax, known as a profit resource rent tax, of up to 15% in addition to the 25% corporate tax rate already applying. The revised fiscal terms were implemented in the 2008 Finance Act and apply to production arising from exploration licences granted since 1st January 2007. Standard exploration licences 1/11 (Barryroe) and 2/11 (Kish Bank) are subject to the provisions of the 2007 Licensing Terms.

Write off of expenditures against tax liability is a matter for my colleague the Minister for Finance and the application of tax law is a matter for the Revenue Commissioners. I understand that in the event of a commercial discovery, historic exploration capital expenditures incurred in Ireland in the 25-year period prior to the commencement of field production are 100% deductible against corporation tax at the start of production. This includes capital expenditure on exploration activities outside the lease production area but excludes expenditure incurred in other countries.

The 1975 Licensing Terms, which were introduced at a time of optimism in regard to commercial discoveries of oil and gas, provided for State participation up to a maximum of 50% in a commercial discovery, subject to the State paying its appropriate share of all relevant exploration and development costs. No commercial discoveries of oil or gas were made under these terms and this provision was deleted in 1987.