The Government will increase the amount of tax on revenues from offshore oil and gas exploration.

Eamon Ryan, Minister for Communications, Energy and Natural Resources in the Republic is set to announce a new tax on profitable oil and gas finds of up to 15%.

In 1992 a new regime was introduced requiring oil and gas companies to pay 25% corporate tax and they could write off their exploration costs.

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Opposition parties criticised the practice especially following the Corrib gas find and the sharp increase in energy prices.

Mr Ryan said that the Government had to take a balanced approach to increase revenue but also to encourage exploration.

Economic consultants Indecon recently released a report recommending that the Government increase its tax take and Mr Ryan will announce the extra tax on the more profitable oil fields today.

Oil and gas companies will pay up to 15% more to the State from today.

(SB/SP)