Finian McGrath (Dublin North Central, Independent)
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1641. To ask the Minister for Communications, Energy and Natural Resources if he will consider setting up a national oil company as it may speed up the area of oil exploration; and if he will make a statement on the matter. [33851/14]

Joe McHugh (Donegal North East, Fine Gael)
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There is potential for Ireland to enjoy both economic and energy security benefits from its indigenous oil and gas resources. These benefits will only be realised through effective exploration. Ireland has a policy of actively encouraging international exploration investment to locate in the Irish offshore, through an active and targeted promotion campaign, regular licensing rounds and by supporting petroleum research projects that deepen knowledge of the petroleum potential of the Irish offshore. The recently published report by international experts Wood Mackenzie on Ireland’s oil and gas fiscal terms considered, amongst other matters, the efficacy of establishing a national oil company. The report identified a variety of issues that need careful consideration prior to making a decision regarding the establishment of such an entity including clarity as to the role of such an entity, avoidance of potential conflicts of interest, and how such an entity might obtain the significant level of financial, technical and commercial resources necessary to undertake its functions. The report recommended that the current concession system be retained as Ireland is still in the early stages of the exploration and development cycle, but that the possibility of establishing a national oil company be carefully considered at some point in the future. Having considered the report the Government has no immediate plans to establish a national oil company, but instead will continue to focus in the short-term on building on the current positive momentum in exploration activity.