§ 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 they envisage British companies allied to Mexican companies participating in oil exploration and production in Mexico.
§ Lord STRABOLGIMy Lords, there is no question of British companies being involved in oil exploration and production in Mexico, as this is carried out exclusively by the Mexican State Oil Corporation. British companies are, however, seeking to identify opportunities that may arise in conjunction with Mexican interests to supply specialised equipment and services to the Corporation.
§ The Earl of LAUDERDALEMy Lords, I thank the noble Lord for that reply. May I ask him whether he can give the House an assurance that any undertakings to supply equipment, or whatever, to the Mexican oil industry will not be monopolised either by the nationalised oil company in Mexico or by the nationalised oil company in Britain?
§ Lord STRABOLGIMy Lords, the United Kingdom offshore capability is based on experience gained in the difficult conditions of the North Sea, and in consequence British companies can offer a range of specialised services required for offshore oil development work. With regard to the British National Oil Corporation, its current overseas activities are almost entirely those of an international oil trader.
§ The Earl of LAUDERDALEMy Lords, I wonder whether the noble Lord would supplement his kindly and fairly informative answer with this further information: Is it the case that the British National Oil Corporation is itself organised in syndicates of supplying firms to assist in its operations abroad?
§ Lord STRABOLGIMy Lords, in the first instance this would be a matter for the Corporation, but any activities beyond the role of oil trader would require the consent of the Secretary of State for Energy.