STATOIL, the Norwegian state oil company, confirmed last night that it would actively pursue operating licences in the Irish section of the Rockall Trough.

"The Rockall Trough is the `next generation' of exploration on the Irish continental shelf and extends the work we are already doing west of Ireland," said the company's exploration manager for Ireland, Mr Geirr Haarr.

The Department of Energy, which is due to issue licences next June, will also receive applications from Enterprise Oil, with Marathon and Total seen as other likely bidders.

Statoil said it would next week start an appraisal well in a block that forms part of the Connemara basin, off Co Galway.