Drilling plans for 1979
The Minister said plans were not finalised, but the exceptional 1978 level of drilling was unlikely to be repeated as many licence obligations ended that year. Barry argued licences should require drilling on a comparable scale; the Minister cited new acreage for Phillips with conditions on seismic studies and wells, but said the same number of wells could not be expected.
asked the Minister for Industry, Commerce and Energy if he is in a position to state, after the close of the recent oil drilling season, if the same level of exploration will be maintained during the next drilling season; the names of the companies who have indicated their intention to maintain drilling next year; and the main conditions of the agreement reached which cover offshore oil exploration during the coming season.
Comment on this
The licensees operational plans for the 1979 drilling season are unlikely to be finalised for some months yet. I am not therefore in a position to indicate what the precise level of operations may be next year.
I can say, however, that it is most unlikely that the exceptional level of this year's operations will be achieved. Under the terms of the licences granted in 1976, most drilling obligations had to be complete within three years, that is, in practice, before the end of the 1978 drilling season.
Furthermore, certain licenses who had more than three years within which to complete particular obligations decided to drill in 1978. The 1978 season was, therefore, quite exceptional in so far as the level of operations was concerned and 1979 is likely to be closer to the more normal levels of 1976 and 1977.
Under the 1976 licence agreements five contractual wells are due for completion in 1979. It is probable that additional wells will be drilled next year but, as I have indicated, it is too early to say what the ultimate number is likely to be.
Comment on this
There can be. Is the Minister not free to attach conditions to any licences he issues?
Comment on this
Not as I understand it. The alteration refers to the next question. Question No. 17.
Comment on this
The Minister does not understand. I am not blaming him for this because it is not his area. If the Minister for Industry, Commerce and Energy issues licences for drilling in the offshore regions for the next one or three years, he can attach conditions to these licences. Would the Minister of State not agree that it would be desirable that one of these conditions should be that a number of wells equal to the number of wells drilled this year should be drilled?
Comment on this
We are all anxious to see the maximum number of wells drilled every year. With this in mind an allocation of additional offshore acreage for Phillips, the company that were involved in the Porcupine field, was announced on 10 November and certain conditions were attached in relation to seismic studies, the number of wells and so on. I can let the Deputy have a copy of a press statement on that.
Comment on this
The point I am trying to establish is that it would be in the national interest that the Minister attach to the conditions of the licences he now proposes to issue that there should be an amount of drilling in 1979 equal to that of 1978.