A UK gas and oil company this week lobbied a Strategic Policy Group in Mayo County Council to support its plans to drill a potential multimillion euro offshore gas field on a site 11km from the Bellanaboy Corrib terminal in North Mayo.
In what was presented as an information session but quickly turned into a rock hard sell, Brian O Cathain, Chairman of Europa Oil & Gas, explained that the company had a licence to explore the gas reservoir at the site it has named Inishkea, and believed it had a one-in-three chance of realising a substantial yield of gas energy as well as monetary success.
Mr O Cathain, who was a former Managing Director of Enterprise Oil Ireland for the Corrib Gas Field development, listed off a slew of irrefutable reasons to SPC members as to why a new gas resource is a must for Mayo, while stressing that time was of the essence in order to get the project moving before year end and in advance of the licence expiry in 2024.
With the backing of the council, development of the new Inishkea site was tipped to create a new raft of quality jobs in North Mayo; to extend the life of the existing Bellanaboy terminal and the jobs of the 160 employees there; to potentially realise a gas supply that would shore up domestic supplies both locally and nationally for years to come; and to deliver a clean gas supply from a pristine gas terminal, with low co2 emissions, and little distance to cover in terms of supplying Ireland. The only real obstacle at stake, was the 'lacklustre' support coming from government to the project.
Mr O Cathain's presentation was met with a cautious but warm welcome by a number of members at the Economic Development, Enterprise Support, Planning and Marine SPC meeting held in Mayo House in Castlebar on Wednesday last, with a proposal to take it before the full Mayo County Council and seek approval.
The gas field, which could extend the lifespan of the Corrib Gas Field in Bellanaboy and generate hundreds of millions of euro in the local economy, is sitting pretty in North Mayo just waiting to be tapped - however, government support for the development of the project being driven by a UK oil company, is lacklustre.
That is according to the Chairman of Europa Oil and Gas, Brian O Cathain, who told members of the council's Economic and Corporate SPC on Wednesday last, that he was appealing to them in so far as possible to use their influence, adding, "I am retired but am doing this because it is the right thing to do."
Introducing himself as having worked on the original Corrib Gas field project, Briain O Cathain, a geologist and engineer, told members: "I am retired now but am chairman of a small UK company Europa Oil and Gas, that has this offshore Mayo Frontier Exploration Licence adjacent to Corrib.
"I would hope we learn from the past, where there was limited opposition and would be interested in full public consultation on this before doing anything. We do not even have a plan yet but if we get funding, we will have.
"The pipeline would be maybe 11 kilometers from Corrib and there would be no new pipeline being constructed onshore, and it is also nowhere near Inishkea, that is just the name we chose.
"FEL is a Frontier Exploration Licence and it is adjacent to Corrib, and Europa Oil and Gas is a small company, but is listed on the UK stock exchange.
"We would work up the prospects, do research and try to get in companies with more money to drill the well. We would look to drill in 2025 at an investment of €50m euro, following which we would end up with say 30% of the licence.
"We specialise in doing the technical work and then move on to looking for funding. However, government support is lacklustre - and this lack of support is what is causing this to be difficult to set up and for us to go after the capital.
"The next phase of the licence we must commit to is to drill a well and we need help with securing the €50m funding, and we are out there with big oil companies working on this. But the question mark remains about the political will in Ireland because of all the things we know happened 20 years ago, and then Leo Varadkar and Eamonn Ryan effectively banned exploration and new drilling.
"We must decide by November whether we will commit to drill a well. It is the people who discovered Corrib in 1996 and worked on it over the years who are working on this now, so knowledge and expertise has been built up over the years.
"If it were approved, it will be 2025, coming in to Mayo and Corrib, and if the wells are successful, they could be delivering by 2028.
"There is a one in three chance they will prove successful, and the value is so large, it is compelling. From an economic point of view, it could be substantial, as it is the same size as Corrib, so we are talking about hundreds of millions of euros.
"It would entail a couple of well heads and tie backs into the shore, so we would just be extending out from the terminal, but not changing the footprint or what people do at the terminal.
"The licence we have was granted in 2019 and expires in January 2024. Inishkea and Inishkea West are the two prospects we have, for a sub sea pipeline from that well, to tie to the other wells in Corrib; so no new terminal or planning is needed, just EPA permission re levels. I don’t think we need to involve Mayo County Council, as the terminal footprint remains the same.
"Currently the terminal is scheduled to close between 2030-2035, so this could extend the life of the Corrib Gas terminal; this would add up to 20 years to it, keeping it operational to 2050. Up to 160 are employed there and people are already very concerned, will they have jobs in future. That terminal is worth €3.6 billion euro and it would be a shame for it not to be operational.
"If this new development comes through, because it is just the wells and nothing else, it would be a much lower cost and make much more profit. The original oil field is still not in profit and is paying back money, because so much was spent on its development. £650,000 old punts was the original cost we put in for Corrib, Shell then spent six billion euro.
"It is far better to burn indigenous gas and it is crazy not to when it is on our doorstep. It has very robust economics now, which it did not have before - because of what has happened in Russia.
"The thing about exploration is, you are never sure. We are going to spend €50 million and we may find nothing. That is a big risk, so the potential prize must be big for investors. The one in three chance of gas being found there, is good.
"Bellanaboy Gas terminal has run like a sewing machine, there have never been any serious incidents or injuries or environmental issues. It runs over 99% of the time and has probably the best record and is a fantastic terminal, with a great relationship with regulators and glowing reports on inspections; it would be good to keep it going."
Low co2
He added that further positives include the fact that gas from Corrib is very low co2 gas because it has not traveled far - unlike current supplies into Ireland that come from overseas - and pointed out that Ireland is also very vulnerable, with so much dependency on the Scottish gas supply. With gas demand going up all the time, he suggested the Inishkea gas could potentially provide 60% of Mayo gas for 10 years, adding: "I think this is a no brainer and cannot understand why the government is not behind us, but we are struggling with the ideological issues. Both Fianna Fail and Fine Gael, when we talk to them, support us, but don’t want to do so in public." He further pointed out community benefits to the area, with more than half of existing employees being from Mayo, and the local area benefitting from lots of community partnerships and sponsorships and voluntary work by staff and substantial charity and event funding. "There is a whole slew of associated benefits for community and of course a lot of spend on hotels and the local economy; also a lot has been done on biodiversity, trees planted; it is actually a very pristine environment, surrounded by birds, because the terminal is quiet and a very nice place for them to be."
A cautious welcome was given to the presentation by Mr O Cathain, with Cllr Jarlath Munnelly stating: "We need gas today and with the licence there already, it would be crazy not to grant drilling. I propose we write and express our view to government that it is important for Mayo and that these are finite gas fields."
Cllr Neil Cruise and SPC Cathaoirleach Mark Duffy seconded the proposal, with Cllr Duffy stating: "I think we should support it and then seek the support of the full Mayo County Council to send to the minister and Taoiseach."
