§ 5. Mr. AingerTo ask the President of the Board of Trade how many offshore oil exploration wells were drilled in the British sector in 1989, 1990, 1991 and 1992; and what is his estimate of the numbers in 1993.
§ The Minister for Energy (Mr. Tim Eggar)A total of 92 exploration wells were drilled in 1989; 152 in 1990; 106 in 1991; and 72 in 1992. My Department does not publish forecasts for the numbers of exploration wells.
§ Mr. AingerIs the Minister aware that since the changes in petroleum revenue tax announced in the Budget, the Chancellor of the Exchequer is now known by the United Kingdom offshore oil industry as the driller killer? is he aware that the industry expects a 30 to 40 per cent. cut in the number of wells drilled, which could mean a cut of 40,000 jobs in the offshore sector? Does he agree that the damage that will flow from the changes in PRT is unacceptable? Did the Chancellor of the Exchequer consult the Minister before the announcement was made and what does the Minister intend to do to restore confidence in our offshore exploration industry?
§ Mr. EggarClearly I have misunderstood the hon. Gentleman. Judging by his previous written questions on the subject, I thought that he was doing his best to prevent exploration of any kind off the coast of the United 309 Kingdom. Oil companies and oil supply companies have expressed both favourable views and reservations about what the Chancellor of the Exchequer announced in the Budget. A number of companies are meeting the Chancellor and my hon. Friend the Financial Secretary to the Treasury to discuss the changes in the light of the publication of the Finance Bill.
Mr. O'NeillDoes the Minister agree that the successful bidders in previous rounds have entered into drilling and exploration obligations which the new tax regime may preclude? Does the Department of Trade and Industry realise that the honouring of those obligations may become increasingly difficult? Does the Minister agree with the Treasury's view that those legal obligations may be set aside, or does he take a contrary view?
§ Mr. EggarI am amazed at the hon. Gentleman. He appears to be advocating that oil companies should break obligations into which they entered freely. I think that the hon. Gentleman should reconsider his view.