§ Mr. Tim Rentonasked the Chancellor of the Duchy of Lancaster on what date agreement was reached in principle between the Government and BP on 51 per cent. Government participation in BP's North Sea commercial oilfields; and whether he will give a more detailed definition of what is meant by agreement in principle.
§ Mr. LeverBP announced its agreement in principle on 16th July 1975 to 51 per cent. State participation in its North Sea commercial oilfields. Agreement in principle means that although further negotiations will be needed to settle the detailed terms, the company accepts the principle of 51 per cent. State participation as outlined by the Government.
§ Mr. Tim Rentonasked the Chancellor of the Duchy of Lancaster what is his current estimate of the total cost, expressed in 1975 pounds, of purchasing 51 per cent. participation in existing North Sea licences; and when he expects negotiations to be concluded.
§ Mr. LeverAs I explained in my reply to the hon. Member for Eastbourne (Mr. Gow) on 6th August, the participation negotiations are on the basis that there should be no net cost to the nation over time. The negotiations are making progress but I cannot forecast when they will be completed.