HC Deb 21 June 1966 vol 730 cc258-61
7. Mr. Hector Hughes

asked the Minister of Power how many, and which, of the persons or companies acting under licence from him drilling for oil and gas in the North Sea, have successfully struck oil or gas, and to what extent; what provision is made in the relevant licences for benefit accruing from those strikes to the national Exchequer; and what benefit will accrue to the national Exchequer in each of those instances.

15. Mr. Wolrige-Gordon

asked the Minister of Power what further information he has about the extent of the natural gas recently discovered in the North Sea; whether it is expected to extend towards the north of Scotland; and whether there is any likelihood of oil in that part as well.

19. Mr. J. H. Osborn

asked the Minister of Power if he will tabulate in the OFFICIAL REPORT how many strikes of natural gas have been reported to him, the location of each strike and the company or organisation making it, the depth at which natural gas has been reported, and the anticipated daily output in each case, respectively, to date; and if he will estimate the total flow which will be available for industrial and domestic consumption for each of the next four years.

Mr. Marsh

All reports furnished to me under the provisions of licences are confidential. I am circulating in the OFFICIAL REPORT a summary of the information so far available about each strike. Further testing of all these fields is needed to assess the full significance of the discoveries, and I cannot estimate what quantity of gas will be available, nor the benefit which will accrue to the Exchequer. Methods for calculating payments to the Exchequer are explained in Appendix 3 of my Report for the year 1964–65 under the Continental Shelf Act. Licences have been granted for areas off the north of Scotland, but the existence of oil and gas there can be proved only by drilling.

Mr. Hughes

Does the Minister not realise that it is quite wrong to treat these matters as confidential? They are a matter of national interest and it is his duty to make clear the profits and percentages and the persons who will make those profits out of these explorations. Will he kindly do so?

Mr. Marsh

All the evidence at the moment is that the nation will receive considerable financial benefits out of these explorations.

Mr. Wolrige-Gordon

May I ask why this information has to be treated as confidential? Furthermore, is the right hon. Gentleman in a position yet to say what will be the kinds of advantages which will accrue to a community in the North of Scotland if oil or gas is discovered off its shore?

Mr. Marsh

It is impossible to give the advantage to any community until one has a better idea of the extent of the deposits and the length of time that they will last.

On the hon. Gentleman's point as to why some of the figures have to be confidential, if we want to encourage commercial companies to carry out these explorations one has to recognise levels of commercial secrecy. Most of the matters about which there is a level of secrecy are highly technical, anyhow. I am circulating as much information as is available, and I am sure that hon. Gentlemen will find that of some help.

Mr. Osborn

Is the right hon. Gentleman aware that we are anxious to know when it will be taken from the sea to the land, and that we would like some indication of what the flow will be? The fact that he cannot give this information will be a disappointment to many.

Mr. Marsh

I am sorry, but nobody in the country knows how much is there. I cannot say the rate at which it will be landed. The first amount will be landed at Killingholme early next year at a rate of about 20 million cubic feet a day.

Mr. Michael Foot

Is my right hon. Friend confident that there are no Communists at the bottom of this gas strike?

Mr. Hughes

In view of the unsatisfactory answer to this set of Questions which are of great public interest——

Mr. Speaker

Order. The hon. and learned Member must be brief when giving notice.

Mr. Hughes

—I give notice that I shall raise this matter on the Adjournment at the earliest opportunity.

Following is the summary of information:—

STRIKES OF NATURAL GAS REPORTED FROM SEPTEMBER, 1965 TO JUNE, 1966
Location of strike Licensee Depth of strike Flow of gas tested in exploration well
North Sea Block 48/6 BP Petroleum Development Limited. Approaching 10,000 feet More than 10 million cubic feet a day. (Company has agreed to supply Gas Council at least 50 million cubic feet a day by 1st July, 1967.)
Lat. 53° 42' 30" N.
Long. 1° 08' 22" E.
North Sea Block 49/17 Continental Oil (U.K.) Limited. Not disclosed Up to 3.6 million cubic feet a day, not sufficient for commercial production.
Lat. 53° 26' 40" N.
Long. 2° 19' 55" E.
North Sea Block 49/26 The Shell Company of the United Kingdom Limited. Not disclosed Not disclosed. Find stated to be "of considerable importance".
Lat. 53° 05' 17" N.
Long. 2° 07' 46" E.
Esso Petroleum Company Limited.
North Sea Block 49/6 Phillips Petroleum Exploration U.K. Limited. Below 11,000 feet Up to 17 million cubic feet a day.
Lat. 53° 42' 19" N.
Long. 2° 05' 03" E.
Fina Exploration Limited.
AGIP Exploration (U.K.) Limited.
Century Power and Light Limited.
Plascom (1909) Limited.
Halkyn District United Mines Limited.
Oil Exploration Limited.
North Sea Block 49/18 The Gas Council. Not disclosed Up to 25 million cubic feet a day.
Lat. 53° 23' 38" N.
Amoco U.K. Petroleum Limited.
Long. 2° 31' 42" E.
Amerada Exploration Limited. Texas Eastern (U.K.) Limited.
Lockton, Yorks. Home Oil of Canada Limited. More than 7,000 feet Between 5 and 10 million cubic feet a day.
BP Petroleum Development Limited.
South Godstone, Surrey. Esso Petroleum Limited. Not disclosed Not disclosed.
BP Petroleum Development Limited.