§ 2.38 p.m.
§ The Earl of LAUDERDALEMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether any applicants for the best blocks on offer in the fifth round of offshore exploration licensing have been advised that they should also apply for less attractive blocks if they hope for sympathetic consideration in the sixth round.
§ Lord STRABOLGIMy Lords, no such advice has been given. Neither the Secretary of State nor the applicant is at liberty, under the regulations governing the licensing, to make or require any change in the application after the closing date.
§ The Earl of LAUDERDALEMy Lords, while thanking the noble Lord for that helpful reply, which I am sure will help to kill some rumours that have been going around, may I ask whether he can tell the House when the next round is likely to be? There are stories that it may be a year hence.
§ Lord STRABOLGINo, my Lords, I cannot, but it may not be for a year or two.
§ Lord WYNNE-JONESMy Lords, would my noble friend agree that it might perhaps be desirable sometimes to ask people to take the rough with the smooth?
§ Lord STRABOLGIMy Lords, I do not know whether my noble friend would describe the published criteria as taking the rough with the smooth, but those are the criteria to which we are working.
Lord CAMPBELL of CROYMy Lords, as it is understood that this question of applying for blocks is related to the talks on participation, may I ask the noble Lord whether he can give any indication of when the Government will be in a position to inform Parliament about the situation reached in the negotiations with individual companies that have been proceeding on State participation?
§ Lord STRABOLGIThat may not be until early next year, my Lords. The noble Lord must realise that there is no question of delay. My right honourable friend is presently examining the information supplied to him by applicants and. as has been publicly announced, companies' attitude to the participation negotiations is one of the important factors which will be taken into account.
§ The Earl of LAUDERDALEMy Lords, can the noble Lord eleborate on his earlier reply? Is he saying that there has been no informal discussion with prospective applicants before the applications went in as to what might be well received as a combination of blocks for which applicants were to ask?
§ Lord STRABOLGIMy Lords, not to my knowledge. We published the criteria in the Gazette in both London and Edinburgh on 20th August and the closing date was 5th October. This type of tendering is no different from any other.
§ Lord PARRYMy Lords, is my noble friend satisfied that responsible use has been made of the licences for offshore exploration in the Celtic Sea granted to companies under the earlier round? Has the drilling record there been considered in the allocation under the new round. and would my noble friend not agree 883 that the overall use made so far of Celtic Sea concessions has been disappointing?
§ Lord STRABOLGIMy Lords, the Department of course keeps in close touch with licensees on their plans for drilling in the Celtic Sea, as indeed elsewhere. I can assure my noble friend that an existing licensee's performance is one of the published list of factors that the Secretary of State takes into account in examining applications. With regard to my noble friend's last point, exploration has so far not revealed the Celtic Sea to have such potential as the North Sea, which is of course an outstanding oil province.