§ Mr. Tim Rentonasked the Chancellor of the Duchy of Lancaster what discount factors he is using in negotiating purchase of 51 per cent. of North Sea oil and gas 7W interests; and whether these factors have been accepted by the oil companies.
§ Mr. LeverIn those cases where the Government make a capital contribution, our aim will be to share with the licensees in the recovery of capital and its remuneration. In addition to the principal we shall expect to recover appropriate additional amounts by way of interest and/or other charges. The precise amounts and periods to be covered are a matter for negotiation in each case.
§ Mr. Tim Rentonasked the Chancellor of the Duchy of Lancaster whether he is now taking independent financial advice on the terms for acquisition of 51 per cent. of North Sea oil; and, if so, from whom.
§ Mr. LeverIt would be imprudent not to take independent financial advice in negotiations such as these. We engage advisers on specific questions as necessary, including clearing banks, merchant banks, accountants and consultants.
§ Mr. Rostasked the Chancellor of the Duchy of Lancaster if he will list the seven companies which have now agreed in principle to surrender 51 per cent. of their North Sea interests; on which date negotiations commenced in each case; whether such negotiations have been completed, if any; and if such negotiations are actively continuing in all cases.
§ Mr. Tim Rentonasked the Chancellor of the Duchy of Lancaster which oil companies have agreed provisional or final terms with Her Majesty's Government for sale of 51 per cent. of their North Sea interests.
§ Mr. LeverBP, Burmah, Deminex, Tricentrol, Blackfriars Oil, London and Scottish Marine Oil and Scottish Canadian Oil and Transportation have agreed in principle to 51 per cent. Government participation in their commercial oilfields in the North Sea.
On 12th November 1974 my right hon. Friend the Secretary of State for Industry, in his previous capacity, wrote to these companies together with the other licensees in commercial oilfields—except Deminex which had not yet acquired an interest in a commercial field—inviting them to negotiate. Talks with Deminex began in early 1975 when the company 8W acquired an interest in a commercial field. Initial meetings with the other licensees were held between November 1974 and January 1975.
Negotiations have not yet been completed with any of the seven companies which have agreed in principle to 51 per cent. Government participation. These negotiations have reached different stages in each case but all are continuing.
§ Mr. Rostasked the Chancellor of the Duchy of Lancaster if he will list the companies with whom he is presently negotiating to acquire 51 per cent. of their North Sea interests, where no agreement has so far been reached in principle.
§ Mr. LeverInitial discussions have taken place with all the licensees in the commercial oilfields. Their names are listed below. Further confidential discussions are now being held with a number of the companies—in addition to the seven which have agreed to 51 per cent. Government participation in principle—and I shall keep the House informed of progress.
- Allied Chemical (Great Britain) Ltd.
- Amerada Exploration Ltd.
- Amoco (UK) Petroleum Ltd.
- Charterhouse Securities Ltd.
- Chevron Petroleum Co. Ltd.
- Conoco Ltd.
- Esso Petroleum Co. Ltd.
- Getty Oil International (England) Ltd.
- Gulf Oil (Great Britain) Ltd.
- Hamilton Brothers Oil Co. (Great Britain) Ltd.
- Hamilton Brothers Petroleum (UK) Ltd.
- Imperial Chemical Industries Ltd.
- Mobil Producing North Sea Ltd.
- Murphy Petroleum Ltd.
- The Norwegian Oil Co. DNO (UK) Ltd.
- Occidental Petroleum (UK) Ltd.
- Ocean Exploration Co. Ltd.
- Ranger Oil (UK) Ltd.
- RTZ Oil and Gas Ltd.
- Santa Fe (UK) Ltd.
- Shell UK Ltd.
- Skelly Oil Exploration (UK) Ltd.
- Tenneco Great Britain Ltd.
- Texaco North Sea UK Ltd.
- Texas Eastern (UK) Ltd.
- Thomson Piper Petroleum Ltd.
- Thomson Scottish Petroleum Ltd,
- The Trans-European Company Ltd.
- Unocal Exploration & Production Co. (UK) Ltd.
§ Mr. Canavanasked the Chancellor of the Duchy of Lancaster whether he will publish details of the agreements reached with the seven oil companies who have agreed to participation in North Sea oil development.
9W
§ Mr. LeverDetailed terms are being negotiated with the companies which have agreed in principle to 51 per cent. Government participation. When heads of agreement have been settled, I will give further details to the House.