Ireland Announces Granting of Offshore Exploration Licences
Irish Minister for Communications, Energy and Natural Resources Pat Rabbitte has today announced that the country is granting 13 new offshore gas and oil licences.
The licences cover three basins located in the Atlantic Sea off the coast of Ireland, the Rockall, Slyne and Porcupine basins. The 13 exploration licences relate to 15 initial applications submitted to the Department of Communications, Energy and Natural Resources (DCENR) in May.
Mr. Rabbitte said that the licences enabled the country to explore for natural resources, without necessitating a cost to the country.
"The positive outcome of the 2011 Atlantic Margin Licensing Round will help bring a new momentum to the level of exploration activity in our offshore," the minister said.
''Ireland must continue to communicate the message to international exploration companies that Ireland is open for business and that the Irish offshore has real potential."
Minister Rabbitte also rejected criticisms of the tax rates offered to the companies in the event of any significant finds.
"At 80 million a pop we don't have that kind of investment to drill holes off the Irish coast... so we have to bring in the companies. And we have to bring them in on a tax regime that doesn't frighten them away."
Seven companies will newly begin exploration on the basins, in addition to five who already hold separate exploration licences in Ireland. The five existing licence holders are San Leon Energy, Chrysaor, Providence Resources Plc, Sosina Exploration and Serica Energy.
The seven new licence holders are Europa Oil and Gas, Antrim Energy, First Oil Expro, Bluestack Energy, Petrel Resources, Two Seas Oil & Gas Ltd and Repsol Exploration.
Europa Oil & Gas welcomed its receipt of two of the exploration licences. The licences apply to the Porcupine basin, over a 2,000 square kilometre area, at depths of between 700 and 2,000 metres.
The licences grant Europa exploration rights for two years with an option to convert into a 15-year-licence after the initial period, to perform drilling and seismic operations.
Managing Director of Europa Paul Barrett said that the company was excited about exploring the area.
"I am very pleased to have secured attractive acreage for the next phase of the company's exploration effort," he said.
"It represents a prime opportunity to develop a strong prospect inventory in an exciting Atlantic Margin play, additionally benefitting from its location in a low tax EU jurisdiction."
Realted Reading from the Irish Times HERE