HC Deb 14 April 1980 vol 982 cc764-6
2. Mr. Dykes

asked the Secretary of State for Energy what date he has fixed for the announcement of allocations for the seventh round of offshore oil licences.

10. Mr. Eggar

asked the Secretary of State for Energy when he expects to announce the arrangements for the seventh round of licences for the exploitation of North Sea oil.

The Minister of State, Department of Energy (Mr. Hamish Gray)

My right hon. Friend will be announcing the full arrangements for the round and the blocks to be offered for licensing very soon.

Mr. Dykes

May I thank my hon. Friend for that answer and express the hope that the announcement will be made soon? Will my hon. Friend say specifically how he expects the arangements for BNOC will be constructed on this occasion compared with participation agreements in the previous round?

Mr. Gray

Negotiations are taking place on the BNOC arrangements. We have received representations from the oil industry and from those outwith the industry as to how the arangements might best be achieved. My hon. Friend would not, I think, expect me to anticipate the announcement to be made by my right hon. Friend in due course.

Mr. Eggar

Is my hon. Friend aware that the delay in making the announcement on the seventh round means that the companies will miss the weather window in 1980? Furthermore, is my hon. Friend aware that the constant changes in PRT combined with the uncertainty about the role of BNOC will have a seriously adverse effect on future drilling activity?

Mr. Gray

My hon. Friend is taking an unduly pessimistic view. There has been no undue delay. These are important matters and I am sure that my hon. Friend agrees that, for the sake of a few weeks, it is essential that they are properly resolved and that we reach the right conclusions.

Mr. Douglas

Does the Minister agree that there is considerable disquiet in the industry, which believes that there ought to be more than 70 blocks announced in the seventh round? What assessment has the hon. Gentleman made of the rig market, particularly in view of the loss of the "Alexander Keilland"?

Mr. Gray

It is correct that the industry would have preferred a larger round and we are, of course, taking due note of all representations. The hon. Gentleman will appreciate that, dealing with the rig market all available exploration and appraisal rigs are at present in use. It is not expected that drilling in connection with the seventh round will take place before 1981. The drilling taking place at the moment is on old acreage. That has been made much more attractive, not only by price rises but by the relevant Government policies.

Mr. MeQuarrie

Before the Minister allocates the seventh round of offshore licences, will he undertake to make regulations on the debris from these rigs that floats about the North Sea and to have consultations with the fishing industry to ensure that the damage that is done to fishing vessels is eliminated or, alternatively, is properly compensated for? Is he aware that at the moment regulations do not exist and the oil operators are getting away with pure murder?

Mr. Gray

I know of the concern that my hon. Friend always shows about this matter, with his constituency interest. I assure him that the Government are having close consultations with the fishing industry and, indeed, with others outside the oil industry.

Mr. Sproat

We quite understand that my hon. Friend cannot give us the full details of BNOC's role after the seventh round, but will he at least give us a guarantee that the automatic right of BNOC to sit on all the operating committees will no longer apply?

Mr. Gray

Consultations are taking place regarding the BNOC and the joint operating committees. The proposals at present being considered are that BNOC should have limited rights and that those rights should be put into effect only when the uplifting of oil or directly related issues are concerned.