§ Mr. Donald Stewartasked the Secretary of State for Trade and Industry what is the estimated cost of production per barrel from the Forties Field, using current prices and applying discounted cash flow over a 20-year period.
§ Mr. EmeryThis is basically a matter for BP, but from published material it is interesting to note that BP has said that the capital cost of developing the Forties Field will be well over £300 million; there will also be operating costs which it is impossible to predict. Production of the field at peak will be 400,000 barrels a day. It is impossible at this stage to foresee the exact offtake pattern over a 20-year period.
§ Mr. Donald Stewartasked the Secretary of State for Trade and Industry what are his Department's current estimates for the tonnage of oil which will be extracted from the Scottish field, the royalties, rentals, licence fees and taxation which will be received from the participating oil companies and the net effect on the foreign exchange position of the United Kingdom for this oil production in the years 1975, 1980 and 1985.
§ Mr. EmeryIt is estimated that production by the mid 1970s from the United Kingdom sector of the Continental Shelf will reach 25 million tons, and in 1980 75 million tons. No firm estimate can be made for 1985. At present prices receipts from oil royalties and rents only are estimated at £80 million in 1980. No estimate can be made for receipts from taxation which will depend on the taxation arrangements and rates then in force and on the individual circumstance of the companies concerned. The net foreign exchange saving to the United Kingdom will be several hundred million pounds by the 1980s, but this depends on a large number of variable factors concerning exploitation, exploration, equipment purchasing and overall costs.