Brendan Griffin (Kerry South, Fine Gael)
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241. To ask the Minister for Communications, Energy and Natural Resources his expectations for Ireland’s offshore oil industry in 2015; his plans to generate increased economic activity in this area during 2015; and if he will make a statement on the matter. [1978/15]

Joe McHugh (Donegal North East, Fine Gael)
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Ireland has a very clear strategy in respect of the Offshore Oil and Gas Exploration sector, key elements of which are: to seek to maximise the benefits to the people of Ireland from its indigenous natural resources; to provide opportunities and encourage private industry to take the risk associated with investing in exploration; to take initiatives to deepen knowledge of the potential of Ireland's offshore, in particular through supporting key research projects; and to seek to have a robust regulatory regime in place to ensure that activities are carried out in a safe manner that does not harm the environment. Recent years have seen an increase in interest in the potential of the Irish Offshore as evidenced by:

- Today, Ireland has the highest number of exploration authorisations in place, since exploration began in our offshore four decades ago; and

- The level of seismic acquisition has risen significantly with more 2D and 3D seismic acquired in the period 2013 to 2014 than in the preceding ten years combined.

Despite the low level of commercial discoveries to date, working petroleum systems are known to exist in many of Ireland's offshore basins. 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 or less wells per year.

Ireland competes for exploration investment and there have been significant changes in petroleum markets over the past year, however it is anticipated that drilling levels will increase from a low base over the next two to five years, as drilling commitments now in place are delivered and as new drilling commitments are entered into following on from decisions made by companies currently investing in seismic acquisition.

With regard to production, it is estimated that construction of the onshore section of the Corrib gas field pipeline will shortly be completed, with first gas anticipated in mid-2015. With successful exploration and development, Ireland has potential to benefit from its natural resources of oil and gas in terms of taxation of profits, strengthened energy security of supply and from the economic activity generated through the construction and production phases of any new development. I understand that more than 1,000 jobs have been generated over the past five years in respect of the development of the Corrib field.

What we are witnessing in our offshore is positive and there is a clear forward momentum. The Government’s intention is that momentum should be maintained in 2015.

In that regard my Department will progress a broad range of initiatives during 2015 including:

- Promotion of the 2015 Atlantic Margin Licensing Round which closes in September 2015 and includes all of Ireland’s major Atlantic basins.

- Completion of Irish Offshore Strategic Environmental Assessment (IOSEA) 5 encompassing the Atlantic Margin basins offshore west of Ireland together with the Fastnet, Celtic Sea and Kish Basins offshore south and east of Ireland. The purpose of IOSEA 5 will be to assess any potential impacts on the marine environment associated with activities conducted under petroleum exploration and production authorisations, including any new authorisations awarded under the 2015 Atlantic Margin Licensing Round; and

- Working with the Department of Finance and the Revenue Commissioners to give operational effect in the Finance Bill 2015 to revised oil and gas fiscal arrangements arising out of the recommendations of the Wood Mackenzie Report published in June 2014.