Ceisteanna—Questions. Oral Answers. - Oil Resources Exploration and Development.
- INPC role in oil exploration 7 speeches
The Minister will allow the INPC to take small, carried interests in offshore exploration, with no liability for costs. He said this would not significantly affect available information and suggested statutory backing might be considered.
Proinsias De Rossa, Dick Spring, Thomas J. Fitzpatrick, Albert Reynolds
- Irish Independent report 1 speech
Haughey asked which Minister was responsible for an allegedly bogus, hyped-up report in the Irish Independent and whether it was irresponsible; no answer is recorded.
Charles J. Haughey
- Question Time duration 2 speeches
Mac Giolla argued that Question Time should be extended to make up for time lost; the Ceann Comhairle rejected the claim.
Tomás MacGiolla, Thomas J. Fitzpatrick
- Questions taken together 2 speeches
Collins proposed taking Questions Nos. 23 and 17 together, and the Ceann Comhairle clarified that only Reynolds could ask a supplementary question.
Edward Collins, Thomas J. Fitzpatrick
asked the Minister for Energy if he has any plans for an increased role for the Irish National Petroleum Corporation in the exploration and development of our oil resources.
Comment on this
When the Irish National Petroleum Corporation (INPC) were established as a limited company in 1979 the then Government decided that they should not be empowered to engage in any kind of exploration activities.
Recently, certain companies involved in exploration offshore Ireland have sought the INPC's participation, on a carried basis, in their exploration efforts. I have considered this matter carefully and am of the opinion that the INPC should be permitted to accept these invitations, on condition that the interest is small, that it is carried and that the corporation are not liable for costs if no development takes place. Furthermore, in the case of a development any such interest would be subsumed into the overall State participation. Arrangements for the necessary amendment to the memorandum and articles of association will be completed over the next few weeks.
The purpose of the amendment of the INPC's memorandum and articles of association is to provide a mechanism whereby the State may accept offers to participate in the exploration phase of the search for hydrocarbons. Once a commercial discovery has been established, the State already has the right provided for under the 1975 licensing terms, to participate up to a maximum level of 50 per cent in the development.
At this point in the exploration of our offshore I consider it appropriate that a State entity should acquire first hand experience without cost to the Exchequer. Furthermore in the case of licences to be awarded under the third licensing round, which closes next Saturday, the criteria for allocation of acreage will be the extent to which consortia are prepared to enter into firm geophysical and drilling commitments in respect of the blocks for which they apply, the consortia's technical competence, financial resources, experience both inside and outside Irish waters and the extent to which they are prepared to commit to the use of Irish goods and services.
Comment on this
I welcome the Minister's announcement. Will the involvement of the INPC improve the information available in relation to the activities of exploration companies?
Comment on this
Has the Minister any plans to bring in legislation to give statutory backing to the INPC?
Comment on this
I have not at present but this might be an ideal opportunity to do so especially since we are expanding their powers.
Comment on this
What Minister was responsible for the bogus hyped-up report in the Irish Independent? Does he regard that sort of behaviour as grossly irresponsible?
Comment on this
On a point of order, I understand that Question Time must last for an hour, irrespective of the time. Since three or four minutes were wasted at the beginning of Question Time by various statements and congratulatory messages, I suggest that a further three minutes should be given.
Comment on this
No, the Deputy is not correct. Questions nominated for priority — Question No. 23 in the name of Deputy Reynolds.