Occidental North Sea Group

HC Deb 19 October 1976 vol 917 cc362-3W

Mr. Dempsey

asked the Secretary of State for Energy what progress has been made in participation negotiations with the Occidental Group.

Mr. Benn

On 14th October 1976 the Government and the British National Oil Corporation concluded an agreement on the basic terms for participation by BNOC with members of the Occidental North Sea Group in respect of their interest in the licences covering the Piper and Claymore Fields.

The Occidental North Sea Group consists of Occidental Petroleum Corporation—36.5 per cent.; Getty Oil—23.5 per cent.; Allied Chemical Company—20 per cent.; and Thomson North Sea Limited—20 per cent.

Under the agreement, BNOC will have an option to purchase, at prices in line with those prevailing in the international market, up to 51 per cent. of crude oil and natural gas liquids production available from the Piper and Claymore fields. BNOC's purchase option becomes effective as of 1st April 1977, and under one year notice provisions escalates up to 51 per cent. on 1st April 1980.

The Agreement also provides for BNOC to become a party to the Piper and Claymore licences, and associated operating agreements and to have an effective voice in their operations.

The terms of the arrangement fully satisfy the Government policy to achieve majority State participation in the Piper and Claymore fields, leaving the companies financially neither better nor worse off.