Six off-shore licences awarded in four months

Ireland’s off-shore oil and gas exploration "is going in the right direction" with new figures showing that more off-shore petroleum exploration licences have been awarded in the first four months of 2014 than throughout last year.

According to the Minister for State at the Dept of Energy and Natural Resources, Fergus O’Dowd, the State has awarded six off-shore petroleum exploration licences in the first four months of this year.

The number of licence awards for the first four months of this year is one more than was awarded throughout 2013 with no licence awards taking place in the preceding three years.

Mr O’Dowd said: “With new company entrants in 2013 it is evident that there is significant and growing capacity in the sector, demonstrating that exploration in the Irish offshore is moving in the right direction.”

He stated that there have been no commercial discoveries of oil or gas within the territory of the State in the past five years.

Mr O’Dowd also confirmed that there are 643 mineral prospecting licences currently held by 48 companies.

Figures, provided by the minister in response to a written Dáil question from Bernard Durkan TD, show last year the State awarded the highest number of prospecting licences for minerals when it awarded 142.

The rate of awards is even higher this year with 50 awarded in the first four months to the end of April 30.

The numbers of licences awarded in the first four months represents just under 40% of the total of 102 awarded in 2012.

The figures show that 98 licences were awarded in 2011, 93 in 2010 and 66 in 2009.

Mr O’Dowd said: “While no new commercially viable deposits of minerals have been discovered in the past 10 years, there have been some encouraging results, particularly in counties Limerick and Clare. However, it is too early to determine whether these results will lead to identification of commercially viable deposits.”

On the adequacy of Ireland’s fiscal terms for gas and oil exploration, Mr O’Dowd said: “In March of this year my department appointed Wood MacKenzie to provide expert advice on the fitness for purpose of Ireland’s fiscal terms for oil and gas exploration, development and production. It is expected that Wood MacKenzie will shortly complete their assignment and their report will help inform future decisions.”