Minister of State at the Department of Communications, Energy and Natural Resources, Tony Killeen TD today awarded four oil and gas exploration licenses to groups wishing to carry out work off the West Coast of Ireland.The granting of the Frontier Exploration Licences follows a detailed evaluation of applications received under the Porcupine Licensing Round. Licences over areas totalling 4,963 square kilometres are being offered to Island Oil and Gas and Supernova Ireland Resources BV; Providence Resources, Sosina Exploration and Challenger Minerals; and ExxonMobil, Providence Resources and Sosina Exploration (2 licences).
Minister Killeen said that he was encouraged by the keen level of interest shown in participating in the exploration of Ireland’s offshore and the experience of the companies involved, all of which are currently engaged in existing exploration licences. “I hope that the licences awarded will lead to the discovery and development of new hydrocarbon resources, which will help reduce Ireland’s long term dependence on energy imports”, he explained.
Minister Killeen continued, “These licences represent a strong indicator of the increase in the level of exploration investment offshore Ireland, which has occurred in recent years. This upswing is evidenced by the growth in the number of exploration authorisations and a corresponding increase in the level of drilling activity.”
Minister Killeen confirmed that the licences were subject to the revised licensing terms introduced by Minister Ryan announced in 2007. The terms provide for a tax take of up to 40% in the case of more profitable discoveries.
