North Sea Oil (Hansard, 23 October 1975)

§ Mr. Skeet
asked the Secretary of State for Energy whether he is prepared to admit either Japanese public or private capital into the North Sea either in association with the BNOC or in association with other ventures.

§ Mr. John Smith
Japanese companies will be free to apply for licences in the next licensing round. Their applications will be considered with others. The arrangements for the round will be announced early next year. Although the terms of the round have, in many respects, yet to be decided, there will be provision for majority State participation in any commercial finds and these State shares will be held by BNOC. International banks, including Japanese banks, are 269W already participating in North Sea financing. Whether they undertake future North Sea lending is for their own commercial judgment.

§ Mr. Skeet
asked the Secretary of State for Energy whether he is prepared to admit further Iranian capital—NIOC—to participate in consortia in the North Sea.

§ Mr. John Smith
The NIOC will again be free to apply for licences in the next round of licensing. Any such applications will be considered along with others. The arrangements for the round will be announced early next year.

§ Mr. Skeet
asked the Secretary of State for Energy whether he is prepared to invite or to admit Saudia Arabian capital—Petromin—to participate in consortia in the North Sea.

§ Mr. John Smith
Petromin will be free to apply for licences in the next round of licensing. Any such applications will be considered along with others. The arrangements for the round will be announced early next year.

§ Mr. Gordon Wilson
asked the Secretary of State for Energy what export potential of oil from the Scottish jurisdiction sector of the North Sea oil is expected to occur in 1980, 1985, 1990, 1995 and 2000, respectively.

§ Mr. John Smith
The Brown Book forecasts that we should be producing 100 million to 130 million tons of oil per annum by 1980, and perhaps 100 million to 150 million tons per annum throughout the 1980s. A very large share will come from fields located in waters off the Scottish coast. My right hon. Friend and predecessor said on 6th December last year that it was reasonable to expect that up to two-thirds of North Sea oil will be refined in the United Kingdom, and this will leave a substantial margin for export as crude.