Mr. David Howellasked the Secretary of State for Energy (1) what was the quantity of crude oil disposed of by the British National Oil Corporation in the first quarter of 1983–84; and at what average price per barrel;
(2) what was the quantity of crude oil purchased by the British National Oil Corporation under participation agreements with the North sea oil producers in the first quarter of 1983–84; and what was the average price paid per barrel.
Mr. Buchanan-SmithThe quantity of crude oil purchased under participation agreements and disposed of by the BNOC was 87.8 million barrels. Prices paid and charged for crude oil are a commercial matter for the corporation.
Mr. David Howellasked the Secretary of State for Energy (1) what powers are available to the British National Oil Corporation to waive its right to purchase crude oil under participation agreements; what notice is required to give the oil companies of such waivers; and whether he will review the present arrangements;
140W(2) if he will take steps to revise the arrangements governed by participation agreements, under which the British National Oil Corporation purchases 51 per cent. of crude oil extracted from the North sea.
Mr. Buchanan-SmithThe BNOC's rights to take participation oil are discretionary, exercisable over field life through successive election periods, each normally of one year's duration. Notice, normally of six months or one year, is required of the BNOC's decision to elect for oil and of the percentage level of election—to a maximum of 51 per cent. I shall be reviewing with the BNOC these arrangements and operations in the light of market developments earlier this year.