I wonder how long it will be before the first objector surfaces?
Can anyone post the details of what the actual situation is?Probably the same cynical people who unreasonably objected to the fact that the last government sold off our entire claim to the oil and so we'll never see a cent of it.
Based on Pat Rabbit's previous statements on the issue - "how much Ireland gets in return for oil finds"
The government have set a 25% tax on all profits from commercial oil finds (note profits only come into affect after the underlying costs have been paid off)
Depending on the size of the find / profits, the Tax Take can rise to 40-50%
Unlike Norway who subsidise Oil companies to drill in the northsea - and have a 1 in 4 strike rate (ireland currently has a 1 in 40 strike rate) Norway get 50-70% tax on all profits from commercial finds.
Can anyone post the details of what the actual situation is?
I do know that the cost of exploration is massive, especially in deep water, so it's unreasonable to expect the Irish state to offer anything other than attractive terms to companies taking the risk of drilling there.
West Cork you say?
I wouldn't get too excited about this "find". This is, after all, Providence Resources.
Believe it when you see it.
It will takes years to design and build production platforms and drill more production and injection wells
There's a big increase in the supply of production platforms in recent years. Suppliers are building them on spec rather than to order because of the huge increase in demand. That said I agree with your point; there's a spend of a few hundred million before any oil gets to shore.
However, we should demand that 50% of the oil is dedicated to Ireland rather than have to sell it ot someone else and then import our oil from Saudi/Libya etc..
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