Ireland Strikes Oil off Cork - Recession Over!

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deccurley wrote: »

Oil exploration company Providence has said the Barryroe Oil Field off the southern Cork coast probably contains over a billion barrels of oil.

Bolded the important bits. Providence love a good claim, I'm sure they have a shareholder's meeting coming up

Tabnabs

25% tax on profits and a load of jobs and investment in shore side support and logistics. It also makes Ireland more interesting for other companies to carry out exploration. Which in turn makes it easier for the State to increase the tax without killing off the industry.

chughes

By the time those with their noses in the (Porcupine) trough take their share, we'll be told that returns weren't as good as expected.

If this find does any good for the country, I'll eat my hat.

seamus

deccurley wrote: »

Will this be of any great benefit to the state? Its a potentially huge source of income that's for sure, but does the state have rights to this Oil field?

Probably.

Our problem is that we don't have the expertise to drill this ourselves, so we have to employ private enterprise to do it for us. Drilling, pumping and processing is super expensive, so any company who comes in to drill will want exclusive rights to pump and sell the oil retrieved. Even if there is 1.6bn barrels down there, the Irish state will never be able to sell them directly because we can't get it ourselves. It can take a cut of the profit on each barrel, along with any additional taxes and revenue that can be taken from the company.

smash

If I remember correctly, wasn't this deal like the Shell deal where we will see little or no benefit?

--Kaiser--

^^^^^^^^^^^^
Do you want the sensible response?

I Heart Internet wrote: »

Phanley. You're right, this project will produce jobs for the companies involved and their contractors, operations in the port of cork, perhaps more activity in Whitegate refinery. It will also rekindle interest by other investors and companies in the Irish offshore which could see other similar knock-on effects and perhaps (some) successes.

As for direct revenues for the state, this project will be taxed at 25% (up to 40% if its above a certain level of profitability - I don't know what that figure is tbh). The companies involved will be able to write-off their exploration and development work to date on this project before starting to pay the 25%. This compares with 12.5% corporation tax for other sectors.

The oil is "ours" as a nation. Problem is, oil exploration is very, very, very expensive and relatively unsuccessful in Ireland. If it's a choice between beds for sick kids in crumlin hospital or setting up An Bord Black Stuff and pumping hundreds of millions (perhaps billions) into the atlantic in exploration wells.........then I'd prefer to let private investors roll the dice. Let us take a chunk of the gains and them take the losses. Makes a HELL of a change from the ****ing banks!!!

Or the tinfoil hat response?

Run_to_da_hills wrote: »

Anything of value we have will be foolishly handed over to the EU just like our fishing rights etc.

davet82

smash wrote: »

If I remember correctly, wasn't this deal like the Shell deal where we will see little or no benefit?

shush... just let us enjoy the good news, we're all gonna be sheikhs, i cant fcukin wait!

Stiffler2

F**K our government and also F**K the private companies.

Get Norway on the phone immediately.
They pump their own wells and bow down to no private company
They own everything they pump.

we need this deal


sigh - but it will be sold for a tenner to the first waving brown envelope no doubt

--Kaiser--

Stiffler2 wrote: »

F**K our government and also F**K the private companies.

Get Norway on the phone immediately.
They pump their own wells and bow down to no private company
They own everything they pump.

we need this deal


sigh - but it will be sold for a tenner to the first waving brown envelope no doubt

More moronic comparisons with Norway.

Roughly since the late 60s there has been about 130 test holes drilled in Irish waters. Of these four have produced commercial finds. Corrib and three off Kinsale. This equates to a strike rate of about 1 in 30. So in theory to find gas in Ireland you have to sink 30 wells to get 1 strike. No commercial finds of oil have yet to be found in Ireland. Compare this to Norway where the strike rate is 1 in 4. Now coupled to this Ireland’s acreage tends to be in the Atlantic, deep, rough and therefore expensive to drill (an exploration drill in the Atlantic costs about €50 million, so if you had to do that 30 times it will cost €1.5 billion) compared to the shallower North Sea. Norway just offers exploration companies a far better deal. They are offering Concorde. All we have is Ryanair’s inflight magazine.

http://www.thejournal.ie/readme/column-for-now-ireland%E2%80%99s-oil-reserves-are-best-off-in-private-hands-256444-Oct2011/


http://www.iooa.ie/securing-the-future-page41390.html

seamus

Stiffler2 wrote: »

F**K our government and also F**K the private companies.

Get Norway on the phone immediately.

So, you dont want anyone else to pump it, and your solution to this problem is to....call someone else in to pump it.

Genius.

http://www.boards.ie/vbulletin/showthread.php?p=77606390#post77606390

It's a small oil well, if it exists at all. We don't have the money or expertise to drill it ourselves. There's a potential for a good gain, but there's also a big potential to pump (no pun intended) hundreds of millions into the project and get nothing back.
Better to let a private company take all the risk. The potential gain for us is less, but the potential loss is nil.

drdeadlift

Stiffler2 wrote: »

F**K our government and also F**K the private companies.

Get Norway on the phone immediately.
They pump their own wells and bow down to no private company
They own everything they pump.

we need this deal


sigh - but it will be sold for a tenner to the first waving brown envelope no doubt

Norway initially had a sour deal with (not too sure the oil company).So when the oil company discovered a heap of oil in the north sea the Norwegian government changed laws(so as oil extraction was illegal in their waters) so renegotiate of current contracts was on the table and bravo the Norweigian receive 80% profits at the pump.
Im worried it wont be the same in Ireland,a grubby brown envelope might stop that.And of course this could be just todays news.
I did hear in the past previous examinations of the site showed many separate wells which makes it a kunt of a job.

V_Moth

So this story is going to come up every 4 to 5 months whenever Turd Reilly needs some publicity?

out da lough

So once again the Oirish are circling Cork like vultures. Ye screwed up the whole country with ye're corrupt Dublin government, regulators, IFSC, and "police force."

Now ye think we'll bail ye out with our natural resources down here? Time to declare independence methinks and bail out of this corrupt over centralised parochial has been backwater.

GavRedKing

out da lough wrote: »

So once again the Oirish are circling Cork like vultures. Ye screwed up the whole country with ye're corrupt Dublin government, regulators, IFSC, and "police force."

Now ye think we'll bail ye out with our natural resources down here? Time to declare independence methinks and bail out of this corrupt over centralised parochial has been backwater.

Posts like this make even Cork people cringe TBH.

out da lough

*dutifully cringes*

el diablo

out da lough wrote: »

So once again the Oirish are circling Cork like vultures. Ye screwed up the whole country with ye're corrupt Dublin government, regulators, IFSC, and "police force."

Now ye think we'll bail ye out with our natural resources down here? Time to declare independence methinks and bail out of this corrupt over centralised parochial has been backwater.

I really hope this post is a wind-up. :rolleyes:

Either way, you don't appear to be too bright.

SEPT 23 1989

I expect plenty more of these discoveries now that we have given up our sovereignty

out da lough

The service and support companies based here are already talking about hiring new people and investing in capital equipment, so let's hope this is a start to the return of the days when Marathon was spending millions in the city. Aberdeen would be a good role model. Too bad we'll be sending so much of the money to Dublin so that it can be thrown into the black hole that is "IBRC." Or maybe down to Wexford to build Brendan's bypasses.

out da lough

SEPT 23 1989 wrote: »

I expect plenty more of these discoveries now that we have given up our sovereignty

Speak for yourself. The benefits of "sovereignty" only apply to those involved in "governing."

We've been run by London and Dublin for so long now that it is only fair to give Berlin and Brussels a go. In fairness they couldn't be much worse than the other two. The longer we can keep the unelected Dublin bureaucrats away from the controls the better.

Ush1

Yeah, Nigeria got oil and it's like paradise there now in Lagos right?