Offshore Oil

HC Deb 17 December 1973 vol 866 cc240-1W

Mr. Laurance Reed

asked the Secretary of State for Trade and Industry (1) if he will ensure that in any new round of offshore licensing, blocks to the south of the Isle of Wight are subject to competitive bidding by United Kingdom owned companies only;

(2) if, in the next round of offshore licensing, he will include stipulations as to the speed at which the oilfield must be developed and the oil landed ashore.

Mr. Tom Boardman

No new round of offshore licensing is at present planned. The conditions to be applied to applicants under any new round are currently under review.

Mr. Laurance Reed

asked the Secretary of State for Trade and Industry if he will give the month and year in which the Forties field was discovered; the month and year when the oil will begin to flow; and the initial rate of production.

Mr. Tom Boardman

The Forties field was discovered in November 1970. Production is expected to start in mid-1975 at an initial rate of about 3 million tons a year. At this stage it is impossible to be definite about the month. The rate should rise to about 5 million tons a year when the second platform is brought into production a few weeks later.

Mr. Laurance Reed

asked the Secretary of State for Trade and Industry if he will give the month and year in which the Auk field was discovered, the month and year when the oil will begin to flow, and the initial rate of production.

Mr. Tom Boardman

The Auk field was discovered in February 1971. If there are no further delays in the construction of the platforms and equipment, production is expected to start in mid-1975 at an initial rate of about 2 million tons a year. It is not possible at this time to be definite about the month.

Mr. Laurance Reed

asked the Secretary of State for Trade and Industry if he will now agree with British Petroleum a firm deadline for the first delivery ashore of oil from the Forties field and undertake to waive royalty payments on one year's production if it can beat the deadline by six months.

Mr. Tom Boardman

I am satisfied that BP is doing everything possible to start production from the Forties field at the earliest moment and that an offer to waive royalties would not help.