Oil and Gas Exploration and Production
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
All petroleum (oil and gas) in Ireland is vested in the Minister for the Environment, Climate and Communications (DECC) under the Petroleum and Other Minerals Development Act, 1960. Under the Act, companies must be issued an authorisation by the Minister in order to carry out oil and gas exploration or production activities in the Irish offshore.
The Programme for Government contains a commitment to end the issuing of new licences for the exploration and extraction of gas, on the same basis as the decision taken in September 2019 by the previous government in relation to oil exploration and extraction. The Minister made that commitment effective immediately, and DECC is no longer accepting new applications for exploration licences for natural gas or oil.
This commitment has been given statutory effect through the Climate Action and Low Carbon Development (Amendment) Act 2021, commenced on 7 September 2021. This Act sets Ireland on a legally binding path to net-zero emissions no later than 2050, and to a 51% reduction in emissions by the end of this decade. It provides the framework for Ireland to meet its international and EU climate commitments and to become a recognised leader in climate action.
Similar to the implementation of the 2019 prohibition on new exploration for oil, applications and authorisations in place before the Government assumed office in June 2020 will not be affected by the ban. This means that existing authorisations will be able to continue to apply to progress through the licensing stages towards production, until they reach a natural conclusion which may include expiry, relinquishment or production.
In order to reflect the Government’s current position, and to provide further detail and clarity to stakeholders on the status of the existing Petroleum Authorisations that they currently hold, the Department has published a revised Policy Statement on Petroleum Exploration and Production in Ireland which has replaced the 2019 Policy Statement.
In line with this policy, the Department has carried out the sixth Irish Offshore Strategic Environmental Assessment (IOSEA6) , which involves a Strategic Environmental Assessment (SEA) and Appropriate Assessment (AA) of the Plan for issue of Petroleum Exploration and Production Authorisations in Irish Offshore Waters for the period to 2030.
This Plan sets out the proposed approach to the issuing of petroleum authorisations, and the consideration of the possible offshore exploration activities that could take place under such authorisations.
All petroleum (oil and gas) in Ireland is vested in the Minister for the Environment, Climate and Communications (DECC) under the Petroleum and Other Minerals Development Act, 1960. Under the Act, companies need to be issued an authorisation by the Minister in order to carry out oil and gas exploration or production activities in the Irish offshore.
Section 21 of the Climate Action and Low Carbon Development (Amendment) Act 2021 amends the Petroleum and Other Minerals Development Act 1960 to restrict the Minister’s power to grant new petroleum authorisations by repealing certain sections of the Act. Saving provisions, however, provide that the Minister may grant successor authorisations to holders of existing authorisations (and further successor authorisations in the future, depending on the stage of the authorisation).
Holders of exploration licences, petroleum prospecting licences or petroleum leases can apply to undertake activities (for example, site surveys) under those authorisations. These are subject to Department’s guidelines where appropriate, such as the Licensing Terms for Offshore Oil and Gas Exploration, Development and Production, the guidance document for Financial Capability Assessments and the Method for Assessment of Financial Indemnity/Insurance of Petroleum Authorisation Holders.
Every three months, the Department of the Environment, Climate and Communications (DECC) publishes an update on the petroleum authorisations (called an “Acreage Report”), together with an associated Concession Map showing their locations offshore.
The Minister is required to present a Six Monthly Report to the Oireachtas, which includes details of all active petroleum authorisations.
All technical data that is obtained under petroleum authorisations issued by the Minister must be reported to DECC, who manages and maintains the National Repository of such data. This Repository includes data from wells (including geological samples), geophysical surveys and technical studies.
In order to assist effective petroleum exploration, DECC makes this data available publicly, as soon as the confidentiality period has expired.
Click here for information on how to access this data.
DECC plays a lead role in initiating and supporting research which expands the knowledge of Ireland’s offshore and facilitates effective exploration. As part of the government’s role in the sustainable management of offshore activities and appropriate marine conservation strategies, a major data gathering research programme called ObSERVE was established by DECC in partnership with the Department of Culture, Heritage and the Gaeltacht. This had the aim of improving our knowledge and understanding of protected species and sensitive habitats in offshore Ireland.
The first phase of the ObSERVE programme took place over a three year period, which began in 2015. A second phase of the ObSERVE programme is currently under development. It will continue to be led by DECC, in cooperation with the Department of Culture, Heritage and the Gaeltacht, as well as new partners - the Department of Housing, Planning and Local Government and the International Offshore & Energy Division in DECC.
The Kinsale Head, Ballycotton and Seven Heads gas fields will reach the end of their productive life during 2020 and decommissioning will begin once production of natural gas from the fields has stopped. The supply of natural gas from the Corrib gas field has significantly reduced Ireland’s reliance on imported gas. However, production from Corrib is now in decline and is projected to stop around 2030.
After 40 years, production of gas from the Kinsale Area Gas Fields (Kinsale Head, Ballycotton and Seven Heads) came to an end on 5 July 2020, as the gas reserves are depleted. The Kinsale Head gas field was the first gas field to be discovered in Ireland in 1971 and it started producing gas in 1978. A number of satellite gas fields were subsequently discovered and all are located approximately 50 kilometres off the coast of Co Cork in the Celtic Sea. The Kinsale Area Gas Fields supplied all of Ireland’s natural gas from 1978 to 1995 until the interconnectors came on stream around 1995. Collectively, they were Ireland’s only indigenous source of natural gas until 2015 when Corrib came on stream. More recently, they supplied approximately 4% of Ireland’s annual gas requirement.
When a gas field stops producing gas, all of its associated infrastructure must be decommissioned, which involves the plugging of wells and the dismantlement of all other facilities once they have been made free of gas. The Kinsale Area Gas Fields will be the first gas fields to be decommissioned in Ireland. The decommissioning of the Kinsale facilities is subject to the receipt of all necessary regulatory and environmental approvals from the Minister for the Environment, Climate and Communications (DECC).
The operators are required to submit a detailed decommissioning plan to DECC, detailing how they will safely decommission the facilities with minimal impact on the environment. This plan is assessed and approved in line with international best practice. As part of the regulatory process for decommissioning, DECC engages independent specialist advice. In addition, DECC liaises with relevant regulators such as the Commission for Regulation of Utilities (CRU), the Irish Coastguard (IRCG) and the Health and Safety Authority (HSA).
Further information on the applications for decommissioning approved to date can be found below: