§ Mr. Wolrige-Gordonasked the Secretary of State for Trade and Industry to what extent oil companies participating in the exploration and development of the North Sea oil fields enjoy the benefits of Government regional policy; and what, without the disclosure of individual grants, are the sums of money involved.
§ Mr. Anthony GrantOf the regional benefits for which I am responsible, assistance under the Local Employment Acts can be considered for projects undertaken by these companies which provide employment in the development and intermediate areas. On the second part of the question, I regret that the information requested is not readily available.
§ Mr. Wolrige-Gordonasked the Secretary of State for Trade and Industry what estimate he has made of the future profitability of North Sea oil and gas exploration.
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§ Mr. RidleyIt is too early to make reliable estimates.
§ Mr. Wolrige-Gordonasked the Secretary of State for Trade and Industry whether he has now made an estimate of the value of North Sea oil by 1975 and by 1980; and of what its annual rate of production will be in these years.
§ Mr. RidleyI expect that the value of North Sea oil will be determined by reference to the world market value of a similar oil imported into the United Kingdom. There are good hopes that by the mid-1970s production will be about 25 million tons per annum, possibly trebling by the beginning of the 1980s.
§ Mr. Wolrige-Gordonasked the Secretary of State for Trade and Industry whether he will seek to amend the Continental Shelf Act, 1964, to obtain powers for direct access to the cost accounts of the oil companies, similar to those of the United States Federal Power Commissioners, details of which are in his possession.
§ Mr. RidleyNo.
§ Mr. Wolrige-Gordonasked the Secretary of State for Trade and Industry what obligations have been imposed on North Sea oil licensees to safeguard their bore pipes, their abandoned wells and their pipelines.
§ Mr. RidleyApart from specific licence conditions which require my right hon. Friend's approval to be obtained before a well is drilled or abandoned, the licensees are required to conduct their operations in accordance with good oilfield practice. Pipelines are designed by reference to an accepted code of practice.