HC Deb 09 April 1973 vol 854 cc187-9W
26. Mr. McNamara

asked the Secretary of State for Trade and Industry when he expects a decision to be made on the proposed sale of the Rough gasfield at the mouth of the Humber by the Gulf Oil Company to the American owned Amoco Company.

Mr. Tom Boardman

An application by the Gulf Oil Company to transfer its licence to a group led by the British Gas Corporation and Amoco (UK) Petroleum Limited reached me on 27th March. I am considering this.

Mr. Dalyell

asked the Secretary of State for Trade and Industry if he will make a statement about his discussions with Berry Wiggins and Company about the Rough gasfield in the North Sea.

Mr. Tom Boardman

The chairman of Berry Wiggins has twice seen Ministers in the Department about his negotiations with the Gulf Oil Company, which is the present licensee of the Rough gas-field. In December last year Berry Wiggins was told that we would consider any application which Gulf made to transfer the licence to it and that in reaching a decision we should weigh its capacity to undertake prompt and efficient development of the field against that of the other parties.

Mr. Dalyell

asked the Secretary of State for Trade and Industry what representations he has had from the Gas Corporation about the desirability of exploitation of the Rough gasfield in the North Sea being exploited by Amoco.

Mr. Tom Boardman

A part of the Rough gasfield is in an area already licensed to a group of four concerns led by the British Gas Corporation and Amoco (UK) Petroleum Limited. The Corporation has told me that, as Gulf wishes to relinquish its interest in the field, it sees advantages in the whole field being exploited as a unit by its group.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will make a statement on the provisions in production and exploration licences for North Sea oil and gas, which permit the transfer of the licence from one company to another.

Mr. Tom Boardman

Model Clause 32(1) of Schedule 4 to the Petroleum (Production) Regulations 1966 provides that a licensee may not assign any of his licence rights without the prior consent of my right hon. Friend the Secretary of State.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will list the criteria which his Department applies to permit a holder of a licence to produce North Sea gas to transfer its rights to another company.

Mr. Tom Boardman

Proposals to assign rights in offshore petroleum production licences are considered on their merits. In doing so, we take particularly into account the criteria listed in paragraph 6(3) of the notice published in theLondon Gazette on 22nd June 1971.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will give details of the submissions made to him by Berry Wiggins and Company Limited regarding its bid to Gulf Oil for the Rough gasfield.

Mr. Tom Boardman

The chairman of Berry Wiggins saw my hon. Friend, the Under-Secretary of State for Trade and Industry last December and said that his company was negotiating with the Gulf Oil Company to acquire the Rough gasfield. At the end of March the chairman saw me to discuss subsequent developments and to register his concern that the negotiations had been broken off.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will make an announcement regarding discussions between the Gas Corporation and his Department regarding the price to be paid for gas from the Rough field.

Mr. Tom Boardman

The price of the gas is a commercial matter between the corporation and the licensee, but I am kept informed of matters of this nature.

Mr. Douglas

asked the Secretary of State for Trade and Industry what was the date on which his Department approved the transfer and sale of Gulf Oil's licence to procure gas from the Rough field to Amoco Company.

Mr. Tom Boardman

No decision has yet been taken on the application by Gulf Oil (Great Britain) Ltd. for a transfer of its licence to a group led by Amoco (UK) Petroleum Ltd. and the British Gas Corporation.