Providence Resources said it will delay controversial plans to drill for oil off Dalkey in County Dublin because the law is unclear.
The Irish oil firm, which said last month it had potentially found oil between the Antrim coast and Rathlin Island, outraged residents of the south Dublin suburb, home to U2 frontman Bono and fellow musician Van Morrison, when it got permission to drill.
Providence said it made the decision after it became clear that certain elements in EU laws dating back to 1999 weren't transposed correctly into Irish law.
It will make a new application once the law has been clarified.
Republic Planning Minister Jan O'Sullivan said she will review the application.