HC Deb 11 February 1969 vol 777 cc1107-9
11. Mr. Lane

asked the Minister of Power what steps he is taking with a view to further exploration for gas and hydrocarbons in the North Sea, Irish Sea and British Channel; and how many exploration wells he estimates will be drilled during 1969, 1970 and 1971.

Mr. Freeson

Substantial further exploration of the Continental Shelf areas under licence is assured until 1970–71 by the terms and conditions of the licences. The basis on which exploration of new and surrendered areas should be undertaken is being considered.

Current licence work programmes call for a minimum of 65 further exploration wells during the period 1969–71.

Mr. Lane

Would it not be a great encouragement to further exploration of new areas in these offshore parts of the Continental Shelf if the Parliamentary Secretary were to say plainly that he does not necessarily regard the price contracts so far agreed as precedents for any future contracts for either gas or oil?

Mr. Freeson

It is for the Gas Council to negotiate the best possible results on behalf of the nation and the industry.

Mr. Emery

Does the Parliamentary Secretary realise that since the last application for licences was received a considerable amount of new information has been obtained? Therefore, there might be great advantage in allowing some of those areas which have not at present been licensed to be claimed for licence, thus encouraging the best use of drilling in this period?

Mr. Freeson

As I have said, the basis upon which further exploration licences are to be granted is now being considered.

Mr. Ashton

What progress is being made towards the setting up of a National Hydrocarbons Corporation, as recommended by the Labour Party Conference in 1968?

Mr. Freeson

This matter is being very seriously considered by my Department.

18. Mr. Hector Hughes

asked the Minister of Power what is the present number of applications, and by whom, for licences to drill for oil and gas in the Irish Sea, indicating the locations and names of applicants.

Mr. Freeson

No applications are outstanding. When applications were last invited in 1965, one licence in the Irish Sea comprising five blocks was issued to Gulf Oil (Great Britain) Ltd.

Mr. Hughes

Are the terms and conditions of the licences granted for drilling for oil and gas on the Scottish shelf of the North Sea the same as those contained in the licences granted for drilling for oil and gas in the North Sea? What steps are taken to protect British trade, industry and commerce and to ensure that they get a fair share of the oil and gas from the Irish Sea?

Mr. Freeson

On the question of oil coming forward, no commercial exploitations have been shown up yet. On the position as between one part of the North Sea and another, or between the North Sea and the Irish Sea, the regulations are common to all the companies which are operating.

Mr. Lane

Can the Parliamentary Secretary throw any light on a Press report last Friday that the Irish Government are willing for a price of well over 4½d. per therm to be paid for any gas discovered in the Irish half of the North Sea? Is it true, or is it just Irish?

Mr. Freeson

I am not responsible for Press speculation, and certainly not for activities which are the concern of the Irish Government.