Serica to start drilling off west coast this year, admits tax situation is a rip off

mayo | environment | news report

Monday January 14, 2008 16:29

by AM

Serica CEO calls the situation in Ireland "attractive"

Paul Allen, Cheif Executive Officer of Serica Energy, has said that the company hopes to drill Corrib "look-a-like prospects" this year. He states that the tax and licensing situation in Ireland is very good for the oil industry (and thus not so good for the people of Ireland).

Serica Energy, a British company, is hoping to start drilling for oil and gas off the west coast of Ireland this year. In the inevitable event of a major find, the company will have to consider whether the resources should be refined at Shell's controversial onshore Bellanaboy site.

The CEO of the company has made no comment on this, but does call the Serica plans "look-a-like prospects to Shell’s Corrib prospects". Serica's website shows the Bellanaboy site on maps of their licensed blocks. See here for maps and detailed information: http://www.serica-energy.com/operations-ireland-block27.php

Serica has raised $52 million in a share scheme completed today, money the company says it will spend on exploration. All expenditure on exploration in Irish waters will be claimed back against tax. Paul Allen, Serica Cheif executive, says "prospects are attractive [...] due to the tax rate in Ireland.”

Under the GreenParty /PD/FF Govt tax rules, 100 per cent of any gas or oil found in Irish waters belongs to the finder, and there is no state company to partner in the exploitation of resources. Mr Allen has confirmed to Reuters news agency that drilling slots are already booked for Irish waters.