§ 36. Mr. Hal Millerasked the Secretary of State for Energy what is the contribution to the Scottish economy of the oil rig platform construction sites in terms of investment, employment and orders received; and if he will make a statement.
§ Mr. John SmithThe investment costs involved in the provision of the four concrete and three steel oil production platform building sites in Scotland will have 723W been of the order of £125 million to £150 million. These figures are an estimate, since detailed figures concerning the cost of the sites developed privately by contractors are not held by my Department's Offshore Supplies Office.
There are five major platform constructors with sites in Scotland which have won 11 orders in all for oil production platforms. In addition there are two platform
TABLE 1: EMPLOYMENT AT SCOTTISH PRODUCTION PLATFORM SITES Department of Employment—October 1975 figures Concrete … … Kishorn … Howard Doris … 500–600 Ardyne … Sir Robert McAlpine plus 7 sub-contractors … 3,178 Portavadie … Sea Platform Constructors … 490 Hunterston … Andoc … 30 Steel … … Nigg … Highland Fabricators … 2,000 Ardersier … McDermott … 1,320 Methil … RDL … 1,185
TABLE 2: OIL PRODUCTION PLATFORM ORDERS FOR SCOTTISH CONSTRUCTION SITES 1972 1973 1974 1975 Concrete … … Kishorn … — — Ninian A — Ardyne … — Brent C Cormorant — — Steel … … Nigg … Forties II Forties IV Ninian B — Ardersier … — Piper — Heather Methil … Auk Brent A Dan — —
§ Mr. Gordon Wilsonasked the Secretary of State for Energy when he intends to initiate the proposed tripartite discussions between the Government, the trade unions and the oil industry on the question of maintaining continuity of work at yards building production platforms; how frequently he plans to hold such discussions; and if he will make a statement.
§ Mr. John SmithPreliminary discussions are already in hand and I hope that it will be possible to hold the first meeting early in the New Year. The intention is that the group should meet as often as may be required.
§ Mr. Skeetasked the Secretary of State for Energy how many companies he has written to about the shortage of orders for production platforms; and what were the trend of their replies.
§ Mr. John SmithI would refer the hon. Member to my reply to the right hon. Member for Wanstead and Woodford (Mr. Jenkin) on 5th November—[Vol. 899, c. 196.]
§ Mr. Skeetasked the Secretary of State for Energy what he proposes to do about yards, for which the Government has a 724W construction sites—Portavadie and Hunterston—which are in the process of development and have yet to win an order.
Table 1, which is derived mainly from figures provided by the Department of Employment, gives the employment statistics for these sites as at October 1975. Table 2 lists the oil production platform orders received by the Scottish yards.
measure of responsibility, that may be running short of orders for production platforms.
§ Mr. John SmithWe intend to take all appropriate steps to encourage the placing of orders for production platforms with United Kingdom yards, including the two which are being established with Government assistance.
§ Mr. Skeetasked the Secretary of State for Energy whether it is within the competence of the BNOC to place orders for new production platforms in certain fields should the Corporation assume a controlling interest in developing fields.
§ Mr. John SmithUnder Clause 2 of the Petroleum and Submarine Pipe-Lines Bill, the corporation will be empowered to place orders for production platforms. However, the BNOC's use of these powers in relation to any particular project will depend amongst other factors on its position within a licence and the operational arrangements agreed with licensees.