Enterprise Oil's second test of the Corrib gas field off the west coast indicates that the area is rich in gas and could eventually supply up to half of the Irish market's growing gas needs.
The second successful appraisal of the Corrib field, which lies 70 kilometres from Achill island, has demonstrated enough reserves for the company to begin development feasibility studies.
The second successful appraisal of the field, which lies 70 kilometres from Achill island, has demonstrated enough reserves for the company to begin development feasibility studies. "The results were very positive and showed high productivity. This gives us a lot of confidence to press ahead with the feasibility studies," said the company's general manager for Ireland, Mr John McGoldrick.
If this goes to plan, Enterprise could seek project sanction next year and would then work toward getting gas to the market by early 2003.
Although the results will require further evaluation, the field looks like being just slightly smaller than the Kinsale gas field. The quality of gas was very good, being both dry and free of contaminants, Mr McGoldrick said.
The well achieved test rates of up to 64 million standard cubic feet of gas, with the flow limited by the test equipment.
Enterprise estimates the well could deliver closer to 80 to 100 million standard cubic feet of gas if normal production equipment was used. Average daily gas demand in the Irish market was 300 million cubic feet, so the well could supply up to a third of the market's needs, Mr McGoldrick said.
The company will now consider issues such as how to get the gas to the market, how much it will cost and how much it can get for it. It must also decide where to bring the gas ashore and what pipeline routes to take.
"These issues are non-reservoir related. We are moving to that phase where commercial issues interest us," Mr McGoldrick said.
The Corrib field, which lies in the Atlantic Ocean in 350 metres of water, was first discovered in October 1996. Enterprise, which has spent some £80 million (€102 million) on the £500 million project to date, plans to start drilling the Shannon prospect, which lies some eight kilometres south of Corrib, next week. It hopes to have results from this well by early October.
Enterprise, which is the operator on the project, has a 45 per cent stake in the Corrib gas field venture. Saga Petroleum Ireland holds 21.5 per cent, Marathon International Petroleum Hibernia has an 18.5 per cent interest and Statoil Exploration (Ireland) owns 15 per cent.
The test result was welcomed by the Minister for the Marine and Natural Resources, Dr Woods, who said that Corrib could be another Kinsale.
He said the discovery of offshore oil and gas was vital so the state's energy needs could be met from indigenous resources, particularly as the Kinsale field was expected to reach the end of its life around 2004.
"All our oil and up to 50 per cent of our gas requirements are imported," Dr Woods said. "Over the last two decades Kinsale/Ballycotton has produced 1.5 trillion cubic feet of gas, providing some 20 per cent of our energy needs and realising cumulative savings on our energy import bill of over £3 billion over the period."
