§ Mr. Buchananasked the Secretary of State for Energy whether he has entered into any further arrangements to guarantee loans raised to facilitate development of North Sea oilfields.
§ Mr. BennThe Ranger Group of companies—Ranger Oil (UK) Limited, London and Scottish Marine Oil Company Limited and Scottish Canadian Oil and Transportation Company Limited—have a 50 per cent. share of Block 3/8 which contains part of the Ninian Field. Ranger Oil (UK) Limited has now joined the other two companies in making public its acceptance of the principle of majority State participation. My Department is engaged with the three companies in detailed negotiation of a participation agreement.
In the context of these discussions, I have agreed to guarantee interim bank advances to Ranger Oil (UK) Limited up to a maximum sum of $20 million principal plus interest, in order to assist the company in financing expenditure on its Ninian interest between now and the second quarter of next year when the company expects to arrange long-term finance. This guarantee was issued today. I have also agreed with the company the terms on which a longer term Government guarantee might be provided next year as part of the company's total financing arrangements for completion of the development of its Ninian interest. Further details are contained in a statement which I have placed in the Library.