DUBLIN, Ireland, June 18 (UPI) -- The Irish government said Wednesday it was increasing taxes on oil exploration and production to bring more financial return to the state.
Energy Minister Pat Rabbitte said tax provisions will be revised upward to provide more financial gains for the state for discoveries made from future exploration licenses.
Rabbitte has said Irish waters hold "great promise" though it's considered frontier energy territory. In 2012, he said, offshore reserves produced 14 billion cubic feet of natural gas and no oil.
In March, the Irish government hired energy consultant Wood Mackenzie to give their "advice on what level of fiscal gain is achievable for the state and its citizens and the best way to achieve such gain," the minister said.
Embracing the report, Rabbitte said Wednesday the tax rate would be capped at 55 percent for new licenses, compared with 40 percent under the current fiscal regime.
"By acting now and setting out government policy on this issue, it is my intention to communicate a clear message in relation to the stability of Ireland's fiscal regime for the oil and gas exploration sector," the minister said in a statement.
No commercial discoveries have been made offshore Ireland since 1996.
