Catherine Murphy (Kildare North, Social Democrats)
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466. To ask the Minister for Communications, Climate Action and Environment the extent to which production pace forms part of Ireland's licensing regime for gas and oil production; the extent to which the State has the ability to control production pace; and if he will make a statement on the matter. [2871/18]

Catherine Murphy (Kildare North, Social Democrats)
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467. To ask the Minister for Communications, Climate Action and Environment the yield to the State in terms of corporation tax from the gas fields in Kinsale, Ballycotton, Seven Heads and Corrib in each of the past 20 years, by gas field; and if he will make a statement on the matter. [2874/18]

Catherine Murphy (Kildare North, Social Democrats)
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468. To ask the Minister for Communications, Climate Action and Environment the yield to the State in terms of royalties from the gas fields in Kinsale, Ballycotton, Seven Heads and Corrib in each of the past 20 years, by each gas field; and if he will make a statement on the matter. [2875/18]

Seán Kyne (Galway West, Fine Gael)
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I propose to take Questions Nos. 466 to 468, inclusive, together.

Since exploration began in the Irish offshore, four commercial gas discoveries (Kinsale Head, Ballycotton, Seven Heads and Corrib) have been made. There have been no commercial discoveries of oil to date.

Once the commerciality of an oil or gas discovery has been established the authorisation holder must apply for a Petroleum Lease. The application must include the outline development and financial plans for the exploitation of the discovery based on the applicant's considered likely production profile.

Within one year of the date of issue of a Petroleum Lease the lessee is required to submit for approval by the Minister a detailed plan of development including a detailed production profile for the life of the field. The application must also include all such technical, economic and financial information, as will enable the Minister to evaluate the proposals fully and to assess their economic, social and environmental implications. During the period of the Petroleum Lease, no material deviation from the approved plan of development may take place without the Minister's prior approval.

Profits from the Kinsale, Ballycotton, Seven Heads and Corrib gas fields are subject to Corporation Tax at a rate of 25%. The operation of the taxation system and the receipt of taxation are matters for the Revenue Commissioners. As a consequence, I am not in a position to provide the Deputy with a figure for the Corporation Tax yield to the State in respect of the operation of the offshore gas fields.

Royalties from the Kinsale and Ballycotton gas fields are payable to the Exchequer at a rate of 12.5% of the fair market value of the gas at the well head. Royalties paid in respect of the Kinsale and Ballycotton gas fields over each of the last 20 years are as follows:

Royalties for the period 1998-2001 have been converted from Irish Punt to Euro.

Royalties are not payable in respect of production from the Seven Heads and Corrib gas fields as Ireland abolished royalties, similarly to the UK and Norway who abolished royalties for new fields in 1982 and 1986 respectively, and moved to a purely tax based system in 1987.

The rate of Corporation Tax that will apply to profits arising from any future commercial discoveries made under an authorisation granted prior to January 2007 will be 25%.

The rate of tax (Corporation Tax and Profit Resource Rent Tax) that will apply to profits arising from any future commercial discoveries made under an authorisation granted from January 2007 to May 2014 will be between 25% and 40% depending on the profitability of the field.

The rate of tax (Corporation Tax and Petroleum Production Tax) that will apply to profits arising from any future commercial discoveries made under an authorisation granted from June 2014 onwards will be between 25% and 55% depending on the profitability of the field. In addition there is a requirement for a minimum Petroleum Production Tax payment at a rate of 5% of gross revenues in every year that a field is selling production.