A new exploration licensing round off the west coast has been initiated by the Minister for Communications, Marine and Natural Resources, Mr Dempsey.

The round in the Slyne, Erris and Donegal basins represents "the second phase of a policy to successively open areas with exploration potential", Mr Dempsey said yesterday. He said it also aimed to send "clear and early signals to the industry as to future exploration rounds".

Mr Dempsey said that the hydrocarbon potential of the area had already been illustrated by the Corrib gas field, which is currently undergoing development. "The infrastructure of the Corrib field could significantly reduce the development cost of any further commercial discoveries in the vicinity," he said.

The €900 million Corrib gas project is currently the subject of two judicial reviews, which are listed for the High Court's Commercial Court next month. The major shareholder, Shell E&P Ireland, is also threatening legal action against seven landowners in north Mayo in relation to access for the high-pressure inshore pipeline linking the field offshore to the proposed terminal at Bellanaboy.

Mr Dempsey said that the 1992 licensing terms for offshore oil and gas exploration and development would apply to licences granted under the round.

SIPTU's offshore oil and gas committee, which has criticised the 1992 deal and the 1987 terms introduced by former energy minister Mr Ray Burke, accused Mr Dempsey of handing the State's resources over to the exploration companies.

"By suggesting that companies can piggyback on to the Corrib project, the Minister is once again ensuring minimal return to the State," said Mr Padhraig Campbell, chairman of the SIPTU committee.