The Arctic III rig used for drilling at Barryroe. Providence Resources says Ireland's offshore field may contain up to 1.6bn barrels of oil. Photograph: Finbarr O'Rourke/Providence Reso/PA
Ireland's first offshore oilfield contains more than 1bn barrels of oil, an exploration company drilling off the County Cork coast has announced.
Providence Resources said Wednesday's results, which show that there could be up to 1.6bn barrels in the oilfield at Barryroe, far exceeded their previous projections.
The company said oil rigs could be operational off the southern Irish coastline within three years.
Tony O'Reilly, its chief executive, said the volume found in the Irish Sea could become as important to Ireland as the North Sea has been for the UK economy.
At present Ireland imports 100% of its oil – a quarter of which is refined not far from Barryroe.
The new results come after the successful drilling and testing of the Barryroe well back in March this year. Over the last few months data from the site has been taken to measure the volume of oil in the field.
Following Wednesday's results O'Reilly described Barryroe as "the well that just keeps giving".
He told the Guardian: "What really makes this special is that while we knew we had this big discovery, it has come in a lot bigger than we first expected. We think it is a hugely important moment in time for Ireland and its territorial waters.
"This well in Ballyroe is bigger than a lot of fields in the North Sea. The next question is – what will be the recovery rate? In the North Sea it's 38%. This is a very big tank of oil at Barryroe. Now we have to look how to develop this. The industry is beginning to speculate in London and they would have higher recovery rates than previously they thought possible from our field."
O'Reilly claimed the Barryroe results and the potential of other exploratory oilfields in five other locations off the Irish coast had huge implications for the country's economy.
"Ireland consumes about 140,000 barrels of imported oil every day so imagine if the country started producing its own. In terms of security of supply, the jobs created and the revenue to the taxpayer this is very good news for the entire island at a time of recession."
He added that it was fortunate that the oil had been located off the County Cork coast as it already contained industrial infrastructure that could help in the construction of future oil wells.
"You have the biggest oil refinery in the country that takes in about 25% of all oil Ireland consumes. Alongside that you also have the Kinsale gas field off Cork. So in terms of infrastructure we are perfectly positioned to get that oil out."
The next step for Providence is to negotiate with big international oil companies operating in the North Sea and the Gulf to form a partnership to extract the oil.
Providence Resources said Wednesday's results, which show that there could be up to 1.6bn barrels in the oilfield at Barryroe, far exceeded their previous projections.
The company said oil rigs could be operational off the southern Irish coastline within three years.
Tony O'Reilly, its chief executive, said the volume found in the Irish Sea could become as important to Ireland as the North Sea has been for the UK economy.
At present Ireland imports 100% of its oil – a quarter of which is refined not far from Barryroe.
The new results come after the successful drilling and testing of the Barryroe well back in March this year. Over the last few months data from the site has been taken to measure the volume of oil in the field.
Following Wednesday's results O'Reilly described Barryroe as "the well that just keeps giving".
He told the Guardian: "What really makes this special is that while we knew we had this big discovery, it has come in a lot bigger than we first expected. We think it is a hugely important moment in time for Ireland and its territorial waters.
"This well in Ballyroe is bigger than a lot of fields in the North Sea. The next question is – what will be the recovery rate? In the North Sea it's 38%. This is a very big tank of oil at Barryroe. Now we have to look how to develop this. The industry is beginning to speculate in London and they would have higher recovery rates than previously they thought possible from our field."
O'Reilly claimed the Barryroe results and the potential of other exploratory oilfields in five other locations off the Irish coast had huge implications for the country's economy.
"Ireland consumes about 140,000 barrels of imported oil every day so imagine if the country started producing its own. In terms of security of supply, the jobs created and the revenue to the taxpayer this is very good news for the entire island at a time of recession."
He added that it was fortunate that the oil had been located off the County Cork coast as it already contained industrial infrastructure that could help in the construction of future oil wells.
"You have the biggest oil refinery in the country that takes in about 25% of all oil Ireland consumes. Alongside that you also have the Kinsale gas field off Cork. So in terms of infrastructure we are perfectly positioned to get that oil out."
The next step for Providence is to negotiate with big international oil companies operating in the North Sea and the Gulf to form a partnership to extract the oil.
