Michael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources in view of estimates that the Barryroe Oilfield contains more than a billion barrels of oil, his plans to maximise the benefit to the State of such resources; and if he will make a statement on the matter. [43705/12]

Pat Rabbitte (Dublin South West, Labour)
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While the results of the recent appraisal well on Barryroe are encouraging, further appraisal work will be required to determine if the discovery can be declared commercial and proceed to a petroleum production project.

It is a core policy objective of my Department to maximise the benefits to the State from exploration for and production of our indigenous oil and gas resources. The principal strategy in this regard is to encourage exploration investment, while ensuring that exploration activities are conducted safely and with due regard to their impact on the environment.

While development projects can generate a significant amount of economic activity, the principal direct financial benefit to Ireland from successful exploration will come in the form of the corporation tax paid on profits from petroleum production.

The tax terms, which were last revised in 2007, provide for a tax take of between 25% and 40% of profits made and seek to strike a balance between maximising the financial return to the State and the need to set the terms at a level that will encourage exploration companies to invest in exploration in the Irish offshore.

While I will keep the licensing terms under review in light of relevant future developments, at this point in time, I believe that the focus should remain on attracting a greater share of international exploration investment to Ireland in order to increase the chances of new commercial discoveries being made.