HC Deb 10 February 1976 vol 905 cc144-5W
Mr. Hardy

asked the Secretary of State for Energy what progress is being made with finance for North Sea oil development.

Mr. John Smith

It was announced on 4th February that syndicates led by the International Energy Bank and the Republic National Bank of Dallas had completed arrangements for loans of $175 million and $100 million to Occidental and Thomson, respectively, for their shares of the development cost of the Claymore Field. Thomson also announced the availability to them of a $40 million facility from a syndicate led by the Royal Bank of Canada. The arrangements for the $275 million loans by the International Energy Bank and the Republic National Bank of Dallas were the subject of discussion with my Department, and my right hon. Friend consented to them.

I am pleased to say also that the recent £75.75 million stock issue by London & Scottish Marine Oil Ltd and Scottish Canadian Oil & Transportation Ltd designed to raise their share of Ninian costs proved attractive to investors and was fully successful.

The Government welcome the successful conclusion of these two transactions, in which it was glad to play its part. They reflect credit on their organisers and amply demonstrate the confidence of the financial community, here and abroad, in the United Kingdom North Sea as an area for profitable investment.