§ 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 how many exploration rigs were operating in the United Kingdom sector of the continental shelf up to the end of September 1977, and are operating at present.
§ Lord STRABOLGIMy Lords, there were 30 mobile drilling rigs operating at the end of September 1977. On 5th December, 21 mobile rigs were operating.
§ The Earl of LAUDERDALEMy Lords, in thanking the noble Lord for that information, may I ask him this further question: Is it the case that at least 45 per cent. of the mobile rigs operating are in fact employed by the "majors" on "farm-ins" for the minor companies?
§ Lord STRABOLGIMy Lords, of the 21 mobile rigs now operating, four are British owned.
§ The Earl of LAUDERDALEMy Lords, perhaps the noble Lord did not quite get the point of my question. Might I ask him—and, if he would prefer it, I will put down a further Question—whether these rigs operating are being employed by major companies to explore 2108 licensed areas held by the minor companies on what are called in the oil business "a farm-in"? If the noble Lord wishes me to do so, I will put down another Question about this.
§ Lord STRABOLGIMy Lords, I realise that "farm-in" means "assignment". I think it is a different matter. I may say that there is a review of Government policy on assignments in general. If the noble Earl wants me to answer a complicated question about assignment activity in the North Sea that is not on the Order Paper, I think he should put down a different Question.
Lord CAMPBELL of CROYMy Lords, could the noble Lord look into the future and say whether the Government are expecting more or fewer rigs to be operating during the summer of 1978?
§ Lord STRABOLGICertainly, my Lords; because during last August and September there were 31 in operation. The lowest number was, of course, in January—the most difficult month, weather-wise—and at the moment there are 21. There have been 37 operating altogether.
Lord CAMPBELL of CROYMy Lords, I am afraid the noble Lord did not follow my point. I was asking whether he could estimate whether there would be more or fewer next summer, that is, in 1978.
§ Lord STRABOLGIIt is difficult, my Lords. Though I think the major part of the activity in the future will be on production, there are, as I said, 21 mobile rigs now drilling for exploration wells. With regard to production, there are 20 development wells now being drilled from fixed platforms.
§ The Earl of LAUDERDALEMy Lords, could the noble Lord just answer this further question: How many of the exploration rigs now operating are in fact operated by BNOC?
§ Lord STRABOLGINo, my Lords, I do not think I can. There are five United Kingdom-owned rigs, of which four are operating at the moment and one is laid up.
§ The Earl of LAUDERDALEMy Lords, is it not the case that in fact none is hired by BNOC? The question I should like to ask is: What is BNOC doing?
§ Lord STRABOLGIMy Lords, I think that is quite a different matter. As the noble Earl knows full well, BNOC has participation agreements with a 51 per cent. holding in all the companies operating at the moment and with others who are negotiating contracts for the fifth round.
§ Lord LEATHERLANDMy Lords, after all those questions, may I ask my noble friend whether he is aware of the enormous contribution that North Sea oil is making to the growing prosperity of this nation?
§ Lord STRABOLGIYes, my Lords, certainly; that is why this Government are resolute that it should be British-owned.