SIPTU questions figures in oil, gas exploration study

SIPTU has called on the Government to commission an independent assessment of the impact of oil and gas exploration on the Irish economy, in the wake of a recent study by the Irish Offshore Operators Association (IOOA).

The IOOA study, published earlier this month, warned that exploration drilling in Irish waters might be "significantly reduced" unless commercial discoveries with potential were made in the near future. The current success ratio is less than one fifth of international norms, it said in a report presented to the Minister for the Marine and Natural Resources, Dr Woods.

SIPTU representative Mr Padraig Campbell said he questioned the figures in the study, which was conducted by Dr Barry Brunt and Dr Richard Moloney of NUI Cork. The study estimated that total expenditure by the oil and gas industry since 1970 on exploration and appraisal was £642.5 million (€815.80 million) - equivalent to £1,375.6 million in 1998 terms - with only Kinsale yielding confirmed commercial results.

It said that direct expenditure in Ireland was £392.3 million, rising to £976.8 million when indirect impact is allowed for (both figures in 1998 terms). The average annual employment offshore was some 60 full-time equivalent jobs, with total average annual employment being equivalent to 247 full-time jobs.

Mr Campbell said the figures were "misleading", and that the direct benefit of exploration to date on the economy was of far less value than stated. The pessimistic outlook also had to be seen in terms of negotiations on production licences, he warned.

"It was on the basis of such a gloomy outlook that licensing terms were amended to allow for a very lenient tax deal in 1992," Mr Campbell said. An independent study must be conducted by the Government.

"The Minister, Dr Woods, must grasp the nettle here in terms of Enterprise Oil specifically, and its refusal to use Irish goods, services and labour in any meaningful way," Mr Campbell said.

Enterprise Oil has been involved in a dispute with SIPTU over the use of Irish labour.