Madam, - The current controversy about the Corrib gas pipeline has prompted some correspondents and columnists to comment on the licensing terms for our offshore territory.
As one who has been on the periphery of the offshore scene for the past 25 years and has witnessed many false dawns I thought it would be helpful to outline some relevant facts.
Firstly, whilst we have had many offshore prospects, they become resources only when they are discovered.
Secondly, in the past 25 years approximately 125 exploration wells have been drilled off Ireland with just three discoveries - Kinsale, Corrib and the marginal Seven Heads field. The cost of these wells is estimated at €2 billion in present-day terms and graphically illustrates the risks involved, which are only too familiar to our indigenous exploration companies.
Thirdly, this success ratio of one to 42 - or one to 62 if you exclude the Seven Heads find - compares with an international average of one to 10, a North Sea average of one to six and a Norwegian sector risk of one to three.
Licensing terms here and elsewhere reflect the reality of this ratio and we are constantly competing in an international marketplace to attract the investment of the substantial exploration funds required.
Interestingly, the Norwegian government has recently announced a relaxation of its licensing terms to attract additional drilling, thereby making its sector more attractive than the UK's.
When our offshore territory becomes a proven productive area (if ever) future licensing terms can reflect that in all our interests. - Yours, etc,
BILL LYNCH, Newtownpark Avenue, Blackrock, Co Dublin.