Western Europe: Ireland

WESTERN EUROPE

Robyn Fowler and Susannah James, Arthur Andersen-Petroleum Services Group, London

Ireland

Licensing. The South Porcupine basin, frontier round awards were announced during the first quarter of 1999 with disappointing results. With 156 blocks offered, only two received applications for licenses. Elf and Agip were awarded these, both valid for 15 years. Requirements include comprehensive work programs and the acquisition and analysis of 2-D seismic.

Activity picked up slightly by the second quarter, with Marathon being awarded a licensing option covering six blocks in the Slyne Trough. This option gave Marathon the first right to an exploration license over all or part of the area. In return, the company committed to a two-year work program of seismic acquisition and technical development to establish the area’s potential. Enterprise also was awarded a licensing option, which includes one block and four part-blocks in the Donegal area.

North Sea Map Click for enlarged view

The third quarter saw a complete lack of licensing activity, but in the third week of October, another licensing option was granted, this time to Ramco Energy Plc. This option encompasses four North Celtic Sea part blocks, which cover the Seven Heads oil and gas accumulation offshore Ireland. The work program for this option includes evaluation of four wells previously drilled by Esso and Marathon between 1974 and 1990.

Exploration and drilling. Two new wells were drilled in the Irish sector during 1999, double the number spudded in 1998. Both wells were drilled on Enterprise’s Block 18/25. Well 18/25-1 was drilled to appraise the Corrib field. The well proved the southerly extension of the field from Block 18/20 and tested gas at rates up to 64 MMcfd. The company went on to drill 18/25-2 in the southern part of the block. This well targeted the Shannon prospect, which was found to be dry.

Development and production. In June 1999, approval was granted for the development of South West Kinsale (formerly known as the South West Lobe). Gas production from the 30-Bcf field began in October from a single well tied back to the Kinsale Head Bravo platform.

Gas production from Ireland totaled 48 Bcf, for an average rate of 132 MMcfd.