CAPITAL: DUBLIN
MONETARY UNIT: IRISH POUND
REFINING CAPACITY: 71,250 B/CD
OIL PRODUCTION: 0
OIL RESERVES: 0
GAS RESERVES: 700 BCF

Independent refiner Tosco Corp., Stamford, Conn., took its first step outside the US market by purchasing Ireland's only refinery, the 71,250-b/cd plant at Whitegate.

Tosco, which was sold to Phillips Petroleum Co. in early 2001, bought the assets of Irish National Petroleum Corp. Ltd. for $100 million, plus the value of crude and products inventory. The sale included a 6 million bbl, deepwater crude and products storage complex at Whiddy Island.

Tosco said half of that capacity would likely be leased to Ireland's government for storage of its strategic petroleum reserves.

The refinery had been upgraded to produce low sulfur gasoline and diesel fuel required by the European Community.

The government said Tosco guaranteed to operate the Whitegate refinery and the oil storage terminal at Whiddy Island for at least 15 years and to invest in their development.

The Irish government had discussions with 30 potential buyers before settling on Tosco.

Bord Gais, the Irish state-owned gas company, said gas demand grew 16% in 2000 due to expansion of its network.

The company said the government needed to approve plans for a second subsea gas pipeline connecting Ireland with the UK grid if gas shortages were to be avoided in the winter of 2002-03. The line would cost $357 million.

Most of Ireland's gas supplies came through the line. Domestic supplies from Kinsale field were declining sharply.

Exploration

In 2001 Enterprise Oil PLC announced a 500 million Irish pound subsea development of Corrib gas field.

The Atlantic Margin field in more than 1,100 ft of water would be developed through the use of seven subsea wells tied back to a central gathering manifold. A pipeline would move the gas 70 km to an onshore facility.

Enterprise Energy Ireland Ltd. opened the field in 1996 on Block 18/20. Development of Corrib, thought to hold 25 billion cu m of gas, was due to start in 2001 and be completed by 2003. Wells had flowed up to 60 MMcfd.

The terminal and processing plant would be built on the coast of County Mayo in northwestern Ireland, said Enterprise.

The Irish government had announced a 100 million Irish pound project to construct an onshore pipeline linking the processing plant with the national grid to ensure gas sales could start in early 2003.

Enterprise was operator of Corrib with 45%. Statoil Exploration (Ireland) Ltd. had 36.5%, and Marathon International Petroleum Hibernia Ltd. 18.5%.

Frank Fahey, Ireland's Marine and Natural Resources minister, said development of Corrib was opportune since production from Ballycotton and Kinsale fields was in sharp decline at a time when gas demand in the country was rising.

Ramco Oil & Gas Ltd. was awarded a licensing option for the Galley Head area off Ireland. Galley Head encompassed part of Block 48/18, part of Block 48/19, and part of Block 48/24, all in the North Celtic Sea basin.

Ramco had a 60% interest in the option, Island Petroleum Developments Ltd. 32%, and Sunningdale Oils (Ireland) Ltd. 8%.

Galley Head was 25 km north of Seven Heads oil and gas field. British Petroleum PLC drilled a well on Block 48/18 in 1985 that flowed gas on test. It was in 90 m of water 28 km from the southern Irish coast.