IRELAND UNVEILS NEW PETROLEUM LICENSE REGIME

Ireland has unveiled new terms designed to integrate the licensing regime for oil and gas exploration and development.

They apply to new exploration and development authorizations and replace the exclusive offshore licensing terms introduced in 1975.

NEW LICENSE TERMS

Holders of existing licenses are still subject to the 1975 terms but can choose the new terms under "appropriate circumstances."

Frontier exploration licenses are currently available to complement the standard and deepwater exploration licenses in use.

Rental fees are now spread evenly over the duration of the license, thereby eliminating large upfront payments.

Lease extensions also have been introduced to enable operators to judge commerciality of a discovery beyond the set license period.

Deepwater licenses now cover 12 years instead of the previous limit of 9 years.

Applicants for licenses now have to provide statements of their policy on the safety, health, and welfare of the work force and the environment.

Recent petroleum taxation measures (OGJ, Aug. 17, p. 44) have been incorporated in this year's Finance Act, said Irish Energy Minister Robert Molloy.

"The taxation measures provide an incentive to exploration companies to undertake exploration in Ireland within the next few years to qualify for a special rate of corporation tax on profits of 25%," he said.

NEW LICENSE ROUND

Molloy also announced a new licensing round covering blocks in the Erris and Slyne troughs off western Ireland.

Closing date for application for exploration licenses is June 30, 1993.

"This is a frontier area and therefore requires that special terms should apply," Molloy said.

"Both the petroleum tax measures and the new licensing terms will apply to this round. Details of nonfiscal terms will be announced shortly."

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