The Seven Heads field, off County Cork, was declared commercial in July by the Ramco Energy exploration and production company that is based in Aberdeen, Scotland.
The junior minister for natural resources, John Browne, has granted a petroleum lease for the field to the Ramco-led consortium. Five additional production wells will be drilled beginning next April.
“Ireland is currently very dependent on the UK for gas supplies and with the UK forecast to be gas deficient in a few years, needs to establish new sources of indigenously produced gas,” said Steve Remp, Ramco’s executive chairman. “This project has the potential to supply well in excess of 10 percent of Ireland’s current gas demand,”
Ramco has 86.5 percent of the Seven Heads consortium, with the other partners being Island Petroleum Developments with 12.5 percent and Sunningdale Oils (Ireland) with 1 percent.
Each of the partners has responsibility for selling its share of the gas. Ramco has concluded a deal to sell its entire gas share to Innogy, a British energy company.
Ramco said the awarding of the lease and the signing of the gas sales deal has allowed it to agree