Providence Resources PLC (LON:PVR) has told investors that it is working closely with the Irish Offshore Operators’ Association (IOOA) to get clarity on the Irish government’s position on exploration following Taoiseach Leo Varadkar’s comments at the UN climate action summit yesterday.
Varadkar told world leaders at the UN of Ireland’s intention to phase out oil exploration licences in the future.
The Dublin-headquartered Providence, in a stock market statement, said it believes ‘phasing out’ only relates to the issuance of future licences.
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Moreover, the company said it presumes that all of the options, licences and leases already in place will be allowed to progress for their full duration.
The IOOA is now seeking clarification of the situation on behalf of its members, which include Providence.
Providence pointed investors to comments made last night by the industry group.
“IOOA look forward to seeing the full detail of the proposals to be outlined in the Taoiseach’s speech at the Climate Action Summit this evening,”
“In particular we look forward to receiving the exact detail of the proposed implementation of today’s announcement regarding future exploration in Ireland.
“Our members remain committed to Ireland's efforts to transition to renewable energy, however energy security for Ireland is an important part of that process and we will seek a meeting with government in relation to the matter in the coming weeks.”
Varadkar comments
In his speech Varadkar said: “In the last week, on foot of a request from me, our independent Climate Change Advisory Council recommended that exploration for oil should end, as it is incompatible with a low carbon future.
“They recommended that exploration for natural gas should continue for now, as a transition fuel that we will need for decades to come while alternatives are developed and fully deployed.”
The comments come after Varadkar’s government earlier this year backed off a proposed bill to ban exploration.
In July, the government argued against the bill saying it would not reduce Ireland’s carbon emissions but rather ensure that almost all its fossil fuels would be imported until it moved to a low-carbon economy.