§ Mr. Skeetasked the Secretary of State for Energy whether he proposes that the British Gas Corporation should dispose of, or otherwise privatise, subsidiary F referred to in paragraphs 6 and 7 of S.I., 1982, No. 1131.
§ Mr. John Moore:Once the schemes referred to in the directions have been brought into force, subsidiary F will hold participation rights in relation to the oil interests held by subsidiaries B, C, D and E. The Government intend subsequently to use section 11(5) of the Oil and Gas (Enterprise) Act 1982 to transfer subsidiary F's shares to the Secretary of State with a view to vesting them in BNOC. The final outcome will therefore be the establishment of participation arrangements between BNOC and the new companies holding BGC's interests in offshore oilfields.
§ Mr. Skeetasked the Secretary of State for Energy for what reason he proposes that the British Gas Corporation should establish subsidiary A instead of permitting the British Gas Corporation Gas Council (Exploration) to transfer scheduled assets directly to subsidiaries B, C, D and E pursuant to paragraph 5 of S.I., 1982, No. 1131.
§ Mr. John Moore:The directions aim to maintain as much flexibility as possible because the Government have not yet decided how the disposal of BGC's offshore oil interests will be carried out. Subsidiaries B, C, D and E are therefore being established as a group of companies all owned by subsidiary A so that they could be disposed of either separately or collectively in the form of subsidiary A.
§ Mr. Skeetasked the Secretary of State for Energy whether there will be any flexibility in the time permitted under paragraph 2 and paragraph 9 of the British Gas Corporation (Disposal of Offshore Oil Fields Interests) Regulations 1982 (S.I No. 1131) to accommodate unforeseen contingencies and market conditions.
§ Mr. John Moore:The timetable provided for in clauses 2 and 9 of the directions was set in consultation with the British Gas Corporation. The Government believe that it is reasonable and that it can be met.
Since the directions merely require the Corporation to carry out initial work in preparation for the disposal of its interests in offshore oilfields, market conditions are not relevant at this stage.
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§ Mr. Skeetasked the Secretary of State for Energy in what period of time the British Gas Corporation is intending to dispose of its interest in petroleum production licence PL089 pursuant to a direction contained in British Gas Corporation (Disposal of Wytch Farm Oil Field Interests) Direction 1981 (S.I., 1981, No. 1459); and how he intends to expedite the sale.
§ Mr. John Moore:The Government wish to see the disposal completed as quickly as possible, consistent with obtaining a fair price for the assets. British Gas is currently engaged in commercially confidential negotiations with a number of bidders, and it would not be right for me to speculate on the outcome of these negotiations.