British National Oil Corporation

HC Deb 30 October 1979 vol 972 cc491-2W

Mr. Adley

asked the Secretary of State for Energy whether he will make a statement on advance oil sales by the British National Oil Corporation.

Mr. David Howell

The Government have agreed to proposals that the Corporation should negotiate to receive payment in advance for the sale of some of its oil. The intention is that payment should be received during this financial year for oil to be delivered in 1980–81. As my right hon. and learned Friend the Chancellor of the Exchequer announced on 15 October, the effect of these sales will be to reduce the PSBR in 1979–80 by £400 million to £500 million. The precise terms of the sales are a matter for commercial negotiation by BNOC.