Oil exploration: Too precious to give away

On the face of it, the Government’s decision yesterday to increase the tax take for the State from all future commercial oil and gas discoveries in Irish waters is a good one.

While the basic tax rate of 25% remains the same, the top-up rate applied to more profitable wells will vary from an additional 10% to 40%, but capped at a total of no more than 55%

Pat Rabbitte, the Minister for Communications, Energy and Natural Resources, said he would also introduce a new minimum payment tax rate of 5% every year for a well that is producing commercially.