Celtic Sea oil development
The Minister said discussions with oil companies were confidential and no proposal to pipe oil to Wales had been made to his Department. Further appraisal was needed to establish commerciality; existing drilling data were being assessed, while questions also raised the implications for refining capacity.
asked the Minister for Industry and Energy the talks he has had with oil companies concerning the recent discovery of oil off the Waterford coast.
9.
Comment on this
asked the Minister for Industry and Energy the proposals the Government have to ensure that the oil find in the Celtic Sea is developed in the interests of the Irish economy and the Irish people.
10.
Comment on this
asked the Minister for Industry and Energy if a proposal to pipe oil from the Celtic Sea directly to Wales has been discussed with any of the oil companies involved in exploration in the area; and if he will make a statement on the matter.
Comment on this
I propose to take Questions Nos. 8, 9 and 10 together.
Discussions have taken place with the oil companies involved in the recent discovery of oil off the Waterford coast. The nature of those talks must remain confidential in view of their commercial character.
I can say, however, that no proposal to pipe oil from the Celtic Sea directly to Wales has been discussed. I must emphasise in this context and in regard to the Deputies' questions generally that, while Gulf's well 49/9-2 yielded very encouraging test results, further appraisal work, both seismic and drilling, is necessary before the commerciality or otherwise of the find can be established. Consequently no plans for the development of this find have been put to me. The provisions of our licensing terms are designed to ensure that the national interests are fully protected in the case of an offshore development.
Studies are in progress, both within my Department and on an inter-departmental basis, to examine the implications of a commercial oil find from both the economic and infrastructural points of view. Contacts both at ministerial and official levels are being made and maintained with the authorities of other European countries who are already involved in offshore production.
Comment on this
The Minister has stated that the question of piping oil to Wales has not been discussed. Will he indicate if such a proposal has been made to his Department? Also, in the light of the most recent find of oil, will he indicate whether any reassessment of previous oil finds have been made which may make these finds more commercial? Further, will he indicate if there are any concrete proposals, as against kite-flying, for the provision of additional oil refining capacity here?
Comment on this
With regard to the first part of the Deputy's query, there are no proposals before my Department regarding piping the oil to Wales. With regard to previous finds, all the data associated with the drillings are available in my Department, have been assessed by experts in my Department and obviously will continue to be available to them. We are very encouraged by the flows in this well because it gives us reassurance that we can expect a comprehensive exploration programme in the Celtic Sea basin in the next few years. The number of inquiries gives us encouragement that the basin will be explored comprehensively. With regard to the third part of the question, there are no concrete proposals before my Department for the establishment of an additional refinery.