New survey will help secure buyers for exploration licences, says Rabbitte

A new seismic survey in the Porcupine Basin by international experts will assist Ireland in securing buyers for a new round of exploration licences in the region, according to Minister for Communications, Energy and Natural Resources, Pat Rabbitte.

Mr Rabbitte said the 3D seismic survey by the specialist survey ship Polarcus Amani will be immensely helpful as it will provide invaluable information to possible buyers for the most recent round of exploration licences offered by the State.

“Compared to the old days in terms offshore exploration, nowadays we are far better equipped with the seismic data and geological information .... the fact that a big research project like this is focussing on the Porcupine Basin is very valuable,” he said.

Mr Rabbitte pointed out that one of the sponsors of the project is Providence Resources and its Drombeg exploration prospect lies within the 4,300kmsq area which will be surveyed by the state of the art, Polarcus Amani which tows a seismic array approximately 1.4km wide by 8kms long.

Providence has agreed to licence approximately 1,100 kmsq of 3D seismic data over the Drombeg prospect which is located in the southern Porcupine basis approximately 220kms off the south west coast of Ireland and in approximately 2,500 metre water depth.

Mr Rabbitte was speaking following a guided tour of the €180 million Polarcus Amani at Ringaskiddy Deep Water Berth where he was welcomed aboard the vessel by Polarcus CEO, Rolf Ronningen who pointed out that Polarcus has a strong environmental focus to its work in seismic surveying.

Polarcus Amani will carry out a seismic survey of the area currently licensed to Providence Resources as well as other parts of the Porcupine Basin and will sell the seismic data gathered from these other areas to companies interested in acquiring Irish government exploration licences, he said.

“Ireland needs this type of investment so that the industry can make decisions on exploration drilling informed by the best technical information. I wish the survey well and hope that it will help us to realise the true potential of our indigenous oil and gas resources,” he said.

Mr Ronningen said “the multi-client project will provide us high resolution images of the sub-surface geology that we believe will attract additional domestic and international oil companies to look closer at the potential investment opportunities offshore ahead of the 2015 licensing round”.

“Polarcus Amani is no stranger to Ireland having worked here in 2013. She is one of the largest vessels in our fleet, equipped with the latest seismic technologies and environmental systems to ensure these operations are conducted to the highest safety and environmental standards.”

Mr Rabbitte said the recently published Wood MacKenzie report looking at the fiscal terms for oil and gas exploration in Irish waters will be debated in the Dáil this week and he hoped it would generate interest among the oil and gas exploration industry.

The report, by international consultants, Wood MacKenzie, recommended a change to all licences issued from 2015 that would see the state increase its maximum take from 40 per cent to 55 per cent through a combination of corporation tax and petroleum profits tax.

“The Wood MacKenzie report has not been analysed by commentators who know something about it as well as I would like and I would hope that it would be in the weeks ahead- it’s in the house for debate on Wednesday and I hope that will begin it because this is a landmark quality piece of work.

“I think this is a very well judged regime,” he said, adding that it was designed not to deter the investment that the state needed to secure for the expansion of exploration in Irish waters which was a hugely important issue which had generated “a political brouhaha about the state’s take”.

The report’s principal recommendations were that Ireland should maintain a concession system, with the oil and gas industry, rather than the state, bearing the risk associated with investing in exploration.

“If we had a follow up to the Corrib gas field- Corrib will probably come ashore next April - it’s ahead of schedule now by a couple of months and if it comes ashore next April that will meet almost 60 per cent of our gas need at peak and that’s a comfort at the time.

"When I go to the Energy Council meetings in Europe, they are understandably obsessed, especially the states that get their gas from Russia through Ukraine about security of supply which is something the average citizen rarely thinks about but is hugely important."