News and Media Releases
Shell to Sea rhetoric on fiscal terms is moving the goalposts in Corrib debate
24/02/2007
Shell to Sea, the organisers of today’s protest, state that their objective is to force the Corrib Gas Partners to process Corrib gas offshore. The Corrib Gas Partners have consistently stated that the gas is being processed onshore for safety and environmental reasons and is in line with best international practise. The Corrib Gas Partners believe no reputable energy company in the world would process Corrib gas at sea
The Corrib Gas project is proceeding in line with all relevant legislation, consents and permissions.
Other comments being made today are critical of the fiscal regime and the taxation arrangements around Irish offshore exploration. Such comments have nothing whatsoever to do with safety or offshore processing and are a further attempt by Shell to Sea to move the goalposts in this debate.
Issues or concerns regarding the fiscal arrangements should be addressed to the relevant authorities. Offshore exploration in Ireland is an extremely high risk business. Since the 1970’s some €2 billion has been spent by exploration companies off the Irish coast. Approximately 140 exploration and appraisal wells have been drilled. No crude oil has ever been discovered and there have only been three commercial gas discoveries (Kinsale Head, Seven Heads and Corrib) ever in Irish waters. It currently costs approximately €50 - €70 million to drill a well in the Atlantic margin and the chances of success are 40 to 1. The Irish Government, like most other European Governments, has decided that this risk is best borne by private companies and not Irish taxpayers.