Irish government drawing interest to offshore reserves

The increase in exploration activity of the Irish coast shows the sector is moving in the right direction, Irish Natural Resources Minister Joe McHugh said.

Though considered frontier territory, the Irish government is hedging its bets on the reserve potential. In 2012, the government said, offshore reserves produced 14 billion cubic feet of natural gas and no oil.

McHugh said interest has increased significantly in recent years, with more seismic surveys conducted to get a better understanding of offshore reserve potential conducted in the last year than in the previous 10 years combined.

"All of this demonstrates that exploration in the Irish offshore is moving in the right direction," he said in a statement Monday. "What we are witnessing in our offshore is positive and there is a clear forward momentum."

Ireland imports all of its oil and relies in foreign sources for 90 percent of its natural gas needs.

McHugh said the government is seeing industry interest for a 2015 auction for offshore acreage, "which has the potential to build on the existing positive momentum and bring exploration activity to the type of levels whereby the true petroleum potential of the Irish offshore can be realized."