Four new licences have been issued for off-shore exploration in the north west.
Minister for Marine and Natural Resources Noel Dempsey today announced that three successful applicants for further exploration in the Slyne, Erris and Donegal basins.
After a round of tenders, the successful applicants were: Statoil with Shell as a partner; Serica Energy (UK); Island Oil & Gas plc with Lundin Exploration and Endeavour Energy as partners; and Island Oil & Gas with Lundin as partner.
Mr Dempsey said: "The hydrocarbon potential of this area has been illustrated by the Corrib gas field, and this licensing round offers a new opportunity for exploration in an area that currently remains under-explored."
The Corrib gas field is in the Slyne basin and a Shell-led consortium is constructing a controversial pipeline to bring gas ashore in north Co Mayo.
The acreage on offer in the new licensing round covers approximately 25,000 square kilometres.
The licences were offered after technical studies commissioned by the department showed significant resources in a number of basins off the West of Ireland.
There has been work done off the northwest since the 1970s but factors such as the deposits being in deep water have hampered more extensive investigaition.
However Ireland has developed an operating regime which is considered favourable to exploration companies compared to other countries.
The issue has caused controversy with objectors to the polciy saying the State Ireland has foregone royalties that should accrue to the exchequer.
"Indigenous oil and gas resources are crucial to Ireland's security of supply and energy mix and I hope that these licences will lead to the discovery and development of new hydrocarbon resources that will reduce Ireland's dependence on imported energy," Mr Dempsey said.
He also announced that a new round licences would be offered for exploration of the Porcupine Basin off Co Donegal and further details are due to be announced in October. Studies show the area has substantial potential for gas retrieval.
A review of existing licenses has already begun and the department is seeking tenders from external experts to provide assistance in compiling the review.
"The review will take account of recent increases in energy prices and other factors, particularly the improved understanding of Ireland's prospectivity," Mr Dempsey said.
He said the review should be completed by the end of September and any adjustments to licensing terms will apply to the new Porcupine licensing round.