§ Mr. Sedgemoreasked the Secretary of State for Energy on what basis profits will accrue to the Government as a result of their purchase of majority shareholdings in the North Sea oil activities of oil companies.
§ Mr. John SmithThe State will acquire ownership of a specified proportion of the oil from commercial oilfields meeting the same proportion of costs. The exact basis will depend upon the outcome of the negotiations with the companies.
§ Mr. Sedgemoreasked the Secretary of State for Energy what steps are being taken to ensure that profits accruing to the Government as a result of the purchase of majority shareholdings in the North Sea oil activities of oil companies will not be diminished by the writing-off of development cost properly attributable to their activities in other parts of the world against their North Sea activities.
§ Mr. John SmithThere is no possibility that participation profits will be diminished in this way.