Shell E&P Ireland and Island Oil and Gas are to take up new frontier exploration licences offered by Minister for the Marine Noel Dempsey on the north-east Rockall Basin.
The offers for a maximum of 16 years have been made following applications by the companies for about 1,650 sq kms or 10 per cent of the total area extending off the north and west coast.
However, the Minister's move has been criticised by Mayo TD Dr Jerry Cowley (Ind), who has called for a freeze on all new exploration licensing in Irish waters and a "root and branch" examination of the changes in licensing terms made by former finance ministers Ray Burke and Bertie Ahern between 1987 and 1992.
Dr Cowley said he was "appalled" at the Minister's decision to issue the offers when five Mayo men were in prison over their opposition to the Corrib gas onshore pipeline. "Many of the people who marched in support of the Rossport five were also marching to call a halt to the plundering of our natural resources without adequate return to the State," Dr Cowley said.
Applications for the north-east Rockall Basin licensing round were publicised by the Department in July last year under the 1992 licensing terms. The closing date was extended from March 31st last to May 31st due to a delay in publication in the EU Journal, according to the Department.
The acreage on offer covered 65 full blocks and 12 part blocks, an area of just under 15,800 sq kms - larger than Northern Ireland. The region is classified as frontier because of its "deep water and challenging environment", according to the department.
Two applications from Shell and Island Oil and Gas were received by the deadline, and offers were made by the Minister on July 20th, following what he describes as a "careful assessment". The 16-year maximum length will comprise four phases with separate work obligations.
Shell confirmed yesterday that it would be accepting the offer, along with its co-venturers, Eni Ireland BV and OMV (Ireland) Exploration GmbH.
The company noted that the area was situated to the southwest of the Dooish discovery, where Shell operates on behalf of the same licence group. Shell now has five exploration licences in offshore Irish waters.
"This new award confirms Shell's commitment to the region, not only to development of existing discoveries but also through continued exploration," Mr Andy Pyle, managing director of Shell E&P Ireland, said.
Island Oil and Gas, which has an interest in the Seven Heads gas field among nine licences in Irish waters, is taking up a 715 sq km area known as the "Killala licence" about 70 km off the west coast and about 35 km north of the Corrib gas field.
Mr Paul Griffiths, chief executive of Island, said the Irish sector of the Rockall basin had been tested by only two wells to date, the second of which confirmed the presence of hydrocarbons.
