Most oil licences to proceed despite drill ‘ban’ threat
The vast majority of oil exploration options awarded by the Government, in its last licensing round two years ago, are set to be taken up and progressed despite the threat of a ban being imposed on offshore drilling in Ireland, writes
The first deadline for the acceptance, or otherwise, of 14 licensing options awarded to 11 companies over two tranches in 2016 is imminent. While it is believed at least two recipients are handing back their options, the majority are understood to be planning to take up the options.
It is also understood that any decision has been made on the results of geological studies rather than uncertainty arising from last week’s Dáil vote in favour of a ban on the award of future oil and gas drilling licences in Irish waters.
The 2015 Atlantic Margin licensing round — the Government’s most recent — attracted 43 applications, a record for an Irish licensing round, in late 2015; before awards were made in two stages the following year.
They had a two-to-three year window of acceptance. The round saw a number of big players — such as Eni, BP, Statoil, and ExxonMobil — pick up Irish licensing options and was hailed as a vote of confidence in Ireland’s offshore prospects and its regulatory system. However, the passing to committee stage of People Before Profit’s Bill aimed at stopping the mining of fossil fuels in Irish waters has put the future of Ireland’s oil and gas exploration sector in doubt.
Earlier this week, Europa Oil and Gas — which is sitting on an estimated five billion barrels of oil across seven licences off the west coast — said the bill was “a very disappointing development” but hadn’t dampened appetite in Irish offshore prospects at this early stage.
