The Energy Minister has unveiled an increased tax regime for offshore oil and gas exploration. Under the rules, producers will pay a base rate of 5% every year on working fields with profits taxed up to a maximum of 55%.
Pat Rabbitte says the regime will only apply to new licences and not existing fields.
He says interest in exploring and drilling in Ireland is now at its highest point in 12 years.
Speaking at the 'Our Ocean Wealth Conference' in Dublin Castle, Minister Rabbitte says the new licensing laws will be in place by next year.
Minister Rabbitte said he concurred with the Wood Mackenzie report recommendation - published last month - that there should be no retroactive change to the fiscal terms applying to existing exploration authorisations.
Commenting on the detail of the report, Minister Rabbitte pointed to the key central conclusion which is that there is scope for strengthening the current fiscal system in terms of providing for an increase in the overall State take, ensuring an earlier share of revenue for the State; and addressing what Wood Mackenzie consider to be 'inconsistencies' in the current fiscal system.
The recommendations made by Wood Mackenzie are from an analysis between Ireland and nine other comparable hydrocarbon producing nations - such as Newfoundland and Labrador, New Zealand, Spain and South Africa.
