Ireland's oil and gas industry

[Catmalojin]

Oil company not informed of Dalkey designation proposal

TIM O'BRIEN

Tue, Dec 04, 2012



Providence Resources, the company prospecting for oil off Dalkey in Dublin Bay, yesterday said it had not been given advance information of a Government proposal to designate an area from Dalkey Island to north of Swords as a Marine Special Area of Conservation.

Maps provided by the Department of Arts, Heritage and the Gaeltacht showing the location of six proposed marine special areas of conservation appeared to show an overlap between Providence Resources’s location for a seismic survey and an area called Dalkey Island to Rockabill, which is earmarked for special conservation.

Designation as a special area of conservation (SAC), or even a candidate area, means development would be extremely problematic.

Minister for Arts, Heritage and the Gaeltacht Jimmy Deenihan yesterday proposed more than 27,000 hectares from Dalkey Island northwards across Dublin Bay to north of Swords be designated such an area. The location was one of six designations made under the EU habitats directive.

The others are the Blackwater bank off Co Wexford; the west Connacht coast; Hempton’s turbot bank off the north Donegal coast; Rockabill to Dalkey Island; the Porcupine bank canyon; and southeast Rockall bank.

Notes to the announcement said certain Irish habitats and species had been identified as “insufficiently represented” on a list of Irish marine special areas of conservation. Following a seminar in 2009, the Irish government “agreed a series of further actions with the [European] Commission concerning the designation of additional areas to protect more habitats and species”.

The announcement said the six areas would constitute Ireland’s contribution to that process. The habitat and species to be protected in the Dalkey Island special area are local reefs and the harbour porpoise.

Regulation

A Department of Arts, Heritage and the Gaeltacht spokeswoman said activities in the special areas were regulated by several different departments. She said “no activities” were prohibited but the relevant department must ensure there was no risk to the integrity of the areas before granting consents.

Each department has different consent procedures for the issuing of licences but all are obliged to screen each licence application for its potential impacts on the habitats and species protected in the SAC and to undertake an “appropriate assessment” as required under the directive if there is a risk to the habitat.

Last month the Department of the Environment awarded a foreshore licence to Providence Resources for exploratory drilling 6km from the Dalkey coast.

Providence has argued the project would be of significant economic benefit to Ireland, with up to 40 per cent of profits from production accruing to the State. But groups such as Dublin Bay Solidarity, which organised protests, have raised concerns about environmental issues and taxation and have criticised the level of public consultation on the licence.

A Providence spokesman said it had “heard nothing” of the proposed designation and would consider a response when it had time to assess the move.

© 2012 The Irish Times

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[Catmalojin]

‘Several hundred million barrels’ of oil may lie in new Petrel site off Kerry

Petrel Resources says it is holding talks with prospective partners after a second site in the Porcupine Basin suggests oil.

2 April 2013

AN EXPLORATION COMPANY with rights to explore an area off the west coast of Co Kerry claims the field has shown the potential to hold hundreds of millions of barrels worth of oil.

Petrel Resources says the site in ‘Quad 45′, about 100 kilometres to the west of Valentia Island, has “the capability to hold several hundred million barrels of in-place oil”.

The site was authorised for exploration in 2011, when 13 various sites in the Porcupine Basin off the west coast were offered for new ventures.

Petrel was offered two of those sites; the other site in ‘Quad 35′, about 120 kilometres west of the Dingle peninsula, showed the capability of hosting in excess of a billion barrels of oil.

Quad 45 lies about 35 kilometres northeast of an area in the Dunquin prospect, which is already the focus of a major prospective drilling operation from a consortium led by Exxon Mobil.


The Quad 45 plot licensed to Petrel is shown here in pink with a red mark around it.

Petrel said it had purchased additional seismic data of the area and has carried out further regional seismic mapping.

“We have long believed that the offshore Porcupine Basin is a hydrocarbon province,” Petrel managing director David Horgan said in a media release.

“This has been further supported by our recent work in identifying potential prospects on both of our blocks.

“We look forward to increased activities across the Basin which we believe has the potential to be a major new oil province. We have commenced our search for potential partners.”

Shares in Petrel rose by over 10 per cent in early trading in London this morning.

TheJournal.ie

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[thebig C]

Anybody in the Oil Industry knows there is a difference between "potential to hold" and actual holdings!

I believe there is a major drilling rig due in Irish waters this Summer.....hopefully it finds something....for everybodys sake

C

[odlum833]

ExxonMobil commences drilling at Porcupine Basin in Ireland

Published 03 April 2013


ExxonMobil has commenced a EUR125m ($160m) drilling activity over two prospects at the Dunquin licence area in the Porcupine Basin, 200km offshore Ireland.

Based on earlier data, which suggested the presence of nearly 300 million barrels of oil and 8.5 trillion cubic feet of gas between the two Dunquin prospects, ExxonMobil is planning to drill test wells over a four-month period.

The prospects, if proven and extracted, could be one of the biggest ever global discoveries of oil and gas and is expected to change Ireland's economic fortunes, reported Independent.ie.

Drilling over Dunquin prospects, which are situated in the Atlantic where the ocean is 1.6km deep, is a much anticipated programme and is eagerly watched by oil companies across the globe.

In March 2008, Irish independent oil and gas exploration company Providence Resources, along with ExxonMobil and UK-based Sosina Exploration, was awarded two exploration licences in Porcupine Basin.

The licences in the Porcupine Basin comprise 13 blocks across 760,000 acres, located in water depths of at least 6,500ft.

In June 2009, Providence announced that it will start site survey work on the Dunquin acreage in Porcupine Basin.

ExxonMobil and Italian firm Eni, hold 27.5% interest each in the Dunquin prospect, while Spanish energy firm Repsol, UK-based Sosina and Providence Resources has 25%, 4% and 16% interest, respectively in the prospect.

http://explorationanddevelopment.ene...ireland-030413

[Catmalojin]

Fastnet says Shanagarry's potential confirmed
Updated: 08:49, Wednesday, 10 April 2013


Celtic Sea set to be transformed over the next 12 months, says Fastnet

Exploration company Fastnet Oil and Gas has said the latest independent assessment of its Shanagarry licence in the North Celtic Sea confirms the significant resource potential of the site.

The Shanagarry licence covers an areas of 123 square km and is comparable in size to the Kinsale gas field and Barryroe oil field structures.

Fastnet said it believes the Celtic Sea is set to be transformed over the next 12 months as it once again becomes Ireland's foremost oil and gas basin.

It pointed out that the area was drilled by Marathon in 1984 when oil and gas prices were low and before the discovery and appraisal of Barryroe and the Dragon field in Cardigan Bay.

The company farmed into the Shanagarry licence last year and now operates and holds an 82.35% working interest in the field.

''Fastnet's 3D seismic programmes and farm-out activity places the company in a unique position in the Celtic Sea to provide running room for international oil companies seeking to add offshore Ireland to their 'core area' portfolio's,'' commented Fastnet's managing director Paul Griffiths.

Story from RTÉ News:
http://www.rte.ie/news/business/2013...ial-confirmed/

Fastnet Oil & Gas PLC - Increase in Resources Estimates in Shanagarry

[Catmalojin]

Providence Resources starts Dunquin drilling
Updated: 09:30, Tuesday, 23 April 2013


Drilling at Dunquin site expected to last several months

Exploration firm Providence Resources has started drilling on the Dunquin well, off the west coast of Ireland.

The drilling operations are expected to take several months to complete and the Eirik Raude semi-submersible drilling unit is being used for the work.

''This is a landmark well given that it is the first to be drilled in the central part of the deep-water southern Porcupine Basin and is designed to test a new and potentially material Lower Cretaceous carbonate exploration play concept,'' commented the company's chief executive Tony O'Reilly.

''The well is the second of six wells being drilled as part of Providence's Irish concerted multi-basin, multi-well drilling programme which kicked off in November 2011 with the Barryroe appraisal well,'' he added.

Providence holds a 16% interest in the well, which is operated by ExxonMobil who has a 27.5% equity interest in the site. Other co-venturers are Eni with a 27.5% stake, Repsol with a 25% stake and Sosina with a 4% stake.

Story from RTÉ News:
http://www.rte.ie/news/business/2013...urces-dunquin/

Providence Resources - Operational Update, Dunquin Well: Drilling Operations Commence

[Catmalojin]

Providence reports ''landmark'' year despite higher losses
Updated: 10:49, Wednesday, 08 May 2013


Providence Resources says it is now debt free

Exploration company Providence Resources has reported an operating loss for the year of just over €5.4m, an increase on the operating loss of €4.07m reported last year.

The loss is a result of higher administration expenses related to its drilling operations, including the Barryroe field off the Cork coast which has significant oil and gas potential.

Providence posted a pre-tax loss of €8.2m for the year to the end of December - which the company described as 'a landmark year'.

The company also paid down all its debt from the proceeds of the sale of its UK onshore assets. Over the past 18 months, Providence reduced its debt levels by about €75m and it said it is now debt free.

See how Providence shares are doing in Dublin trade

“2012 was a truly transformational year for Providence, with the most notable event being the successful drilling and well testing on the Barryroe oil field in the Celtic Sea Basin, the first well in our multi-basin drilling campaign offshore Ireland,'' commented the company's chief executive Tony O'Reilly.

He said that the Barryroe test results in March came in far above all pre-drill expectations and the post-well analysis has confirmed the true potential of Barryroe.

Mr O'Reilly said that Providence had always believed in the material hydrocarbon prospectivity of offshore Ireland, adding that the success at Barryroe has firmly validated this view.

''We therefore feel extremely well placed to capitalise on the positive momentum that we have built up in 2012, and to firmly embrace the advances in technology, infrastructure, the fiscal regime and higher oil prices in order to unlock the hydrocarbon potential offshore Ireland,'' he added.

Story from RTÉ News:
http://www.rte.ie/news/business/2013...nce-resources/

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[Catmalojin]

Government reviewing tax on oil, gas exploration
Updated: 09:10, Wednesday, 15 May 2013

Minister for Communications Pat Rabbitte has said an examination of tax rates for oil and gas exploration was being done to try to attract more investment offshore to increase the level of prospectivity.

Speaking on RTÉ's Morning Ireland programme, Mr Rabbitte said he did not think Ireland was very much out of line with other countries in terms of rates and he said very high rates would deter exploration.

Mr Rabbitte said the alternative of setting up a State exploration company was not possible as Ireland did not have the money.

Mr Rabbitte’s comments came as Sinn Féin proposed new legislation seeking up to 80% tax on major Irish oil and gas discoveries.

Sinn Féin spokesperson for Communications, Energy and Natural Resources Michael Colreavy said the party favoured a new tax regime which collected a graduated range of higher taxes from companies involved in oil and gas production but which did not discourage other companies which specialised in exploration.

Under Sinn Féin's plan, taxes on petroleum finds would rise depending on the size of the energy discovery.

Ireland currently applies a 25% corporation tax levy on petroleum firms while oil and gas field profits are hit with a graduated series of tax bands from 0-15%.

Mr Colreavy said that the party had not fixed a specific value for a major discovery. The proposed tax increase would not be retrospective and would only apply to future petroleum finds, he said.

Story from RTÉ News:
http://www.rte.ie/news/2013/0515/392...s-exploration/

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Rabbitte: No point comparing Ireland’s oil prospects to Norway’s

The Minister for Communication and Natural Resources has said a Norwegian-style 80 per cent tax on oil finds would not work, saying: “We’re comparing apples with oranges.”



THE COMMUNICATIONS AND Natural Resources Minister Pat Rabbitte has said that comparisons between Ireland’s oil prospects and those in Norway, which has an 80 per cent tax on oil profits, is like “comparing apple and oranges”.

Rabbitte said that while he would review Ireland’s lower tax rate on oil and gas profits, it was not reasonable to compare Ireland with Norway and said that the country could not afford to carry out its own offshore drilling.

He told RTÉ’s Morning Ireland: “It costs between €80 and €100 million a pop to drill a well off the Irish offshore.

“The Irish state doesn’t have that kind of money and therefore we are dependent on attracting the private industry to spend the money.”

The Minister said that exploration companies have already spent some €5 billion “for little enough return”.

Hopes that Ireland could begin a path of energy independence – it has one of the lowest in the EU – emerged last year after Providence Resources said that it found billions of barrels of oil off the Cork coast.

Last night the Dáil debated a 12-month-old report by an Oireachtas committee into offshore oil and gas exploration which recommended adjusting Ireland’s top corporate tax rate on offshore drilling profits from 25 per cent to as much as 80 per cent, as is the case in Norway.

But on RTÉ this morning, Rabbitte said: “I think it’s a pity that this canard about Norway has been flown and has captured some imagination.

“The truth of the matter is it is the unique geological advantage that Norway has where you can expect a [oil] strike in four as compared to three strikes here from 156 drilling, it is that level of prospectivity that means that you can have that level of tax.”

He said that comparisons to Norway were like “comparing apples with oranges” and said that people who were responsible for this comparison “should have recanted but didn’t”.

TheJournal.ie

[Catmalojin]

Bord Gáis Networks considers €200m cost of interconnectors

Barry O'Halloran

Last Updated: Friday, May 17, 2013, 22:47

State company Bord Gáis Networks is to investigate whether there is a need to invest €200 million in re-engineering its interconnectors with Britain so they can be used to export natural gas from Ireland.

The company, part of the Bord Gáis group, owns and operates two pipelines connecting Ireland with Britain that are used to import over 90 per cent of the natural gas used here.

Neither of the lines, built at a total cost of €600 million, can be used to export gas from here, as when they were built in 1993 and 2003, the Government was focused on securing supplies to meet high projected demand. It would require an investment of €200 million to allow gas to flow from Ireland.


Summer assessment
An Bord Gáis and National Grid, which operates the British gas network, plan to carry out an assessment this summer to establish if there is a demand for this. A previous consultation in 2011 concluded that it was not needed.

According to a spokesman for Bord Gáis Networks, its British counterpart did not believe it would be needed as the country had its own gas reserves in the North Sea, as well as a number of pipelines connecting it with supply points in Europe.

The spokesman said it would not be possible to speculate on the outcome of this year’s assessment. “If there is demand for it, the bottom line is that is going to cost €200 million and that will have to be paid for.”

British gas supplies ran dangerously low towards the end of March as a result of the longer than usual winter, sparking fears a shortage was imminent.

At one point, prices spiked to £1.50 a unit – about three times the norm – in London following a brief interruption to supplies caused by technical problems.

A decision would have ramifications for a number of natural gas projects. The Shell-operated Corrib field, which holds enough of the fuel to supply Irish needs for up to 15 years, is due to come on stream late next year or in early 2015.


Cheap US imports
US multinational Hess is planning to build a liquid natural gas storage facility at Shannon, which would open the Irish market up to cheap imports from America.

Over the longer term, exploration company Providence, believes there are large quantities of natural gas in the Barryroe licence area off the south coast, which is close to pipelines from the original Kinsale field.

© 2013 irishtimes.com

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