Government hopes scheme will boost exploration activity off the west coast
The forthcoming 2011 Atlantic Margin Licensing Round will enable oil and gas exploration companies to apply for the right to explore all of the Atlantic west coast rather that specific blocks as had been the case in previous rounds.
Natural Resources Minister Conor Lenihan said he believes a new approach is required to get oil and gas exploration under way.
“Having considered the lessons to be learned from recent licensing rounds and having consulted with industry, I believe it is time for Ireland to take a new approach to attracting exploration investment to the Atlantic margin. I am proposing a licensing initiative that is simple, yet innovative. It is an initiative with the clear objective of significantly increasing the level of exploration activity in the Irish offshore. It is an initiative that will fit different company sizes and corporate strategies. As a result, it should be of real interest to the industry at large, contractors included.”
“In the past, 15-year licences were granted but they required that a significant investment had to be made within the first phase of the licence (usually four years). In this round, two year licensing options will be on offer to allow exploration companies assess the potential of the area and therefore do not require a large up-front cash investment.
“A 15-year licence can then be secured if desired, provided an appropriate work programme is agreed,” said Mr Lenihan.
Irish Offshore Operators’ Association chairman Fergus Cahill said: “The initiatives taken by the minister and his department in the release of acreage, the introduction of licensing options, and accessibility to data will greatly improve the attractiveness of the Irish offshore to exploration companies.
“Hopefully, this will result in the realisation of the potential of the Irish Atlantic Margin, resulting in development opportunities in the west of Ireland, increased employment, taxation revenue to the Government and security of energy supply.”
The next round will be the largest licensing round to date, covering an area of just over a quarter of a million square kilometres, comprising 996 full blocks and 58 part blocks. The area on offer extends from about 30-380 km from shore, with water depths typically ranging from 200m, or less, to over 3,000m.
Mr Lenihan also announced details of a new trans-Atlantic research corroboration involving a range of Irish and Newfoundland-Labrador research institutes and private enterprise.
“This two-year research project will use sophisticated computer modelling software to generate plate reconstruction models showing Irish and Canadian sedimentary basins in their original positions from millions of years ago when Ireland and Canada were near neighbours. By doing this we can identify areas in Ireland with similar geology that might be rich in petroleum too,” he added.
