Gas field gears up for first yield

THE first gas from the Seven Heads field off the Cork coast will begin flowing in the next few days.

The Seven Heads field has a reserve of 390 billion cubic feet of gas and is expected to supply 10-15% of the country’s demand. The field has a life of around 20 years and will become increasingly important to the country’s gas supply when the Kinsale Head field runs out in a few years.

Consent for production to start was given by Marine and Natural Resources Junior Minister John Browne yesterday. He said the field will bring significant benefits to the Irish economy.

The licence to the Seven Heads was granted to the Scottish exploration firm Ramco who could net around €400 million from the field over its lifetime.

Mr Browne said the Government was satisfied with the terms of the licensing agreement and the tax revenue the State will receive from the firm.

“This is extremely good news from a social and economic viewpoint given that tax revenue accruing to the State over the life of the field is expected to be in the region of €80 million while it is estimated an average of 302 direct and indirect jobs a year are sustained by the Seven Heads gas field while production is at the projected level,” he said.

While gas will flow at the Seven Heads, Statoil says its Cong prospect off the Mayo coast will be abandoned as it was found to be dry. Statoil Exploration will analyse data from the well to see if further exploration of the area is worthwhile. “The plugging of the Cong well is obviously disappointing. However, we were always cautious because experience has taught us that drilling offshore Ireland remains an outside bet in terms of discovering a significant, commercial find,” Statoil general manager John Conroy said.