Unlocking offshore industry potential | Hellenic Shipping News Worldwide
The challenge: evaluating fiscal terms to encourage explorationThe government of Ireland wanted to unlock potential in its offshore oil and gas industry.
While there had been relatively little exploration activity in Irelands offshore and only 3% of the total wells drilled had resulted in commercial discoveries, international interest in the area had increased following successes in other parts of the Atlantic Margin.
Irelands Department of Communications, Energy and Natural Resources commissioned us to conduct a review of fiscal terms and to make recommendations to ensure the most appropriate terms were in place for future licensing rounds.
With the high cost of exploration in Irelands offshore and highly uncertain success rates, striking the right balance between risk and reward was a critical factor in our review.
When setting fiscal terms, governments need to carefully balance their desire to get a fair share of potential future revenues with the companies need to generate positive, risked returns from exploration investment.David BarrowmanVice President, Fiscal Consulting
Our approach: expert analysis to support informed decision makingThe main objective was to assess whether Irelands fiscal terms were fit for purpose and to recommend a system that would be most appropriate for future licencing rounds.
Our work had four main aspects:
1. Face-to-face interviews with interested parties2. A thorough quantitative analysis, mapping out multiple scenarios3. Benchmarking Irelands fisc....