BP executive: Ireland’s oil potential is intriguing

Ireland’s oil potential may "hold some intrigue" but exploration carries "real risk", according to a BP executive.

While many believe waters off Ireland could prove lucrative, Bernard Looney, chief operating officer in production at the energy giant, which carried out 17 explorations in Ireland in the 1980s said the size, depth, and hostility of the areas makes it “exceptionally challenging”.

During a discussion about whether Ireland’s oil and gas potential is over-hyped or under-sold, Mr Looney said it was “a question of whether the rewards justify the risks”.

In preparation for the event at the Irish embassy in London, he said he spoke with one of BP’s exploration directors about the “three principal bas-ins” — the North Celtic Sea, Porcupine basin, and Rockall Trough.

Addressing the debate organised by the London Irish Business Society, he said: “The Rockall Trough is up to 400km offshore. It’s in water that’s up to 1,500m and it’s hostile...

“And to top it all, if you’ll excuse the pun, it is overlaid with basalt... which makes it exceptionally challenging.

“But that’s what we do. That’s what companies like BP do. This is the sort of area where we find we can be distinctive.

“It’s simply a question of whether the rewards justify the risks, and the reality is that given the track record in Ireland Irish exploration does carry real risk.”

But Tony O’Reilly, CEO at Providence Resources, said Ireland’s oil potential is simply “under-explored”.

“That’s the key message. There have not been enough wells drilled.”

Mr Looney said that “consistency, stability and predictability” are the things BP look for when making investments.

“And on the latter, the below the ground, what’s down there, there’s no doubt that Ireland does hold some intrigue,” he said.