Drilling for Canaries oil to get under way

A Repsol offshore exploration rig. Photo courtesy of Repsol
A Repsol offshore exploration rig. Photo courtesy of Repsol

Drilling for oil off the Canary Islands is expected to get under way before the end of the year following Spanish government approval to a Repsol led consortium for a controversial €7.5Bn oil exploration project.

 

The permission is for sinking three exploratory wells at sites some 60 kilometres east of the island of Fuerteventura. Repsol says the project could supply over 100,000 barrels of oil a day, equivalent to 10% of Spain’s energy consumption.

 

The Spanish government is keen to reduce its energy imports – some €40Bn a year – and originally gave permission for exploration in 2012. Challenges from environmentalists and others including the Canary Islands regional government led to delays but the Spanish Supreme Court rejected these in June this year.

 

Spain’s industry, energy and tourism minister José Manuel Soria said on Wednesday that the government had taken the environmental issues into account before agreeing the exploration licences. He said: “We have studied all the arguments that have been presented and, as they do not affect the content of the authorisation, we have proceeded to the signing of the resolution.”

 

Canary Islands politicians fear that the project will damage tourism, which earned the islands over €11Bn in 2013. The project holds out the prospect of creating between 3,000 and 5,000 direct and indirect jobs for the Islands if oil is found.

 

The terms of the licence requires the consortium, which also includes Woodside of Australia and Germany’s RWE, to take out an insurance policy for €40M and deposit €20M in collateral to cover possible environmental and other damages at the drilling sites.

 

Seismic monitoring will also have to be undertaken and drilling halted if an earthquake above 4.5 on the Richter scale is detected within 75 kilometres of the sites.

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

Network Rail tenders £1.7bn minor works contract

Network Rail tenders £1.7bn minor works contract

Network Rail Southern Region is seeking 16 contractors for a new minor works framework.   The minor works buildings and civils framework (MWF-B&C) is divided into nine lots for unplanned, planned and cyclical maintenance works.   The £1.7bn framework is designed to align

Contractor signed for the construction of a £9m new Trent bridge

Contractor signed for the construction of a £9m new Trent bridge

A bridge is being built to connect pedestrians and cyclists in the Lady Bay area south of the river with the Trent Basin waterside housing estate on the north side of the river, close to Nottingham city centre.   It will be the first new crossing of the Trent in the city for 65 years.

Women in Rail Conference marks end of 10th anniversary celebrations

Women in Rail Conference marks end of 10th anniversary celebrations

Women in Rail (WR) marked the end of its 10th anniversary celebrations with its annual Conference on Thursday 2nd March 2023.   The hybrid event, hosted by London law firm Stephenson Harwood, brought together 120 in-person attendees and a virtual audience of almost 100. Tickets had sold out

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.