§ Mr. Skeetasked the Secretary of State for Energy, in return for the transfer by Gulf-Conoco to the BNOC of a substantial interest in their North Sea permits covering certain oilfields, if he will indicate what is the quid pro quo granted to the companies over and above what they would have had if no agreements had been negotiated.
§ Mr. John SmithThese companies volunteered to seek to accommodate the Government's objectives in the spirit in which they first forged their partnership with NCB(X), which has proved so successful. They no doubt took into account that co-operation over participation will stand the companies in good stead in their dealings with Government generally. In addition, the companies have the benefit of having settled in advance the course that participation will take should there be further commercial developments under their existing licences in which the Government seeks participation.
§ Mr. Skeetasked the Secretary of State for Energy (1) in view of the fact that under the agreements between BNOC/Gulf/Conoco the companies continue to be responsible for capital and operating costs arising from the assigned interests to BNOC and BNOC has the option on oil, on what basis he calculates that the companies are left financially neither better off nor worse off;
(2) what compensation or payment oil companies will receive in return for granting the BNOC an option on their North Sea oil.
§ Mr. John SmithUnder the option agreement BNOC will pay market price for the oil, thus leaving the companies financially neither better nor worse off.
307W
§ Mr. Skeetasked the Secretary of State for Energy, apart from BNOC options on the oil to be delivered from certain North Sea oilfields under the BNOC/Gulf/Conoco agreements, if he will list all the remaining rights and contractual advantages vested in BNOC.
§ Mr. John SmithIn addition to the oil option agreement, there is an assignment agreement the effect of which was described in the reply by my right hon. Friend the Chancellor of the Duchy of Lancaster to my hon. Friend the Member for Basildon (Mr. Moonman), on 26th February.—[Vol. 906, c. 301–3.]
§ Mr. Skeetasked the Secretary of State for Energy to what extent the Government's aims in participation set forth in paragraph 5 of the Command Paper No. 6408 go beyond those already achieved by the new model clauses enacted under the Petroleum and Submarine Pipe-Lines Act 1975, Section 13 of that Act and the continuance of the British Gas Corporation operating on the Continental Shelf.
§ Mr. John SmithThe Government's measures in relation to the United Kingdom Continental Shelf form a coherent whole. Majority State participation will assist the more rapid development of a national exploration capability through BNOC; secure better knowledge—technical and economic—of operations; secure title for the nation in all licences under which oil is extracted from fields and control over the disposal of a share of the oil; and enable BNOC to have influence in decisions about the exploitation of our petroleum resources.