Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context | Oireachtas source

157. To ask the Minister for Communications, Energy and Natural Resources if he will confirm that the gas field off the County Mayo coast is worth €13 million, Barryroe Oil Field is worth €85 billion and Dalkey Oil Field is worth €60 billion; and if he will clarify the amount of revenue in tax under the 25% profit tax regime and estimates that these gas/oil fields would bring in. [26039/13]

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

Whilst there has been some welcome upturn in the level of interest in exploration off our coast in recent years, the reality is that the only commercial discoveries of hydrocarbons made in the Irish offshore to date are the three producing gas fields in the Kinsale area and the Corrib gas field. There have been no commercial discoveries of oil to date. Despite the low level of commercial discoveries to date, working petroleum systems are known to exist in many of Ireland’s offshore basins, as demonstrated by a number of non-commercial discoveries as well as other oil and gas indicators such as hydrocarbon shows in wells.

Nevertheless, the oil and gas potential of the Irish offshore is largely unproven and is likely to remain so until there is a significant and sustained increase in the number of exploration wells being drilled from the current levels of 1 to 2 wells per year. Potential oil and gas bearing areas in Irish waters which are currently the subject of exploration activities are by their very nature, prospective, and as such not amenable to estimations of market value or potential tax contribution.

The market value and profitability of the Corrib gas field are dependent upon a combination of factors including, the volume of recoverable gas, the cost of developing and operating the infrastructure, the price of gas over the life of the field, together with the timing and profile of production. It will be appreciated that a number of these parameters are subject to significant variation resulting in a range of potential valuations. Profits from the Corrib gas field will be taxed at 25% when the field goes into production.