§ Mr. Skeetasked the Secretary of State for Energy how much has been and will be required to conduct oil and gas exploration on the United Kingdom Continental Shelf for the years 1975 to 1980, inclusive; what additional sums will be required for field developments during the same period; and if he will give a further estimate for the period 1980 to 1985.
§ Dr. J. Dickson MabonExpenditure in 1975 on exploration for oil and gas on the United Kingdom Continental Shelf, is estimated to have been about £300 million. Future levels of expenditure on such exploration will depend upon a number of factors which I am unable to predict. These include the timing of future licensing rounds and the precise drilling obligations incorporated in those licences.
In 1975, capital expenditure on development of North Sea oil and gas fields is estimated to have been about £1½ billions. Forecasts of future capital expenditure are subject to considerable uncertainty involving the future level of commercial finds, their technological requirements and costs. A recent survey of North Sea operators conducted by the Process Plant Working Party of the National Economic Development Office in conjunction with my Department indicated that their expected expenditure upon identified investment projects between 1976 and 1980 would amount to about £4 billion in last quarter 1975 prices. Other investment outlays including those on finds not yet declared commercial will certainly substantially increase this figure, but it is impossible to estimate these at this stage.
§ Dr. Phippsasked the Secretary of State for Energy (1) how many exploration and appraisal wells have been drilled in the 23W United Kingdom offshore licences; what was their total cost; and what the cost would have been to the British National Oil Corporation had it had a 51 per cent. interest in every licence;
(2) what would be the cost to the British National Oil Corporation of taking a 51 per cent. interest in 30 exploration and appraisal wells drilled offshore in the United Kingdom in any year in 1976 prices.
§ Dr. J. Dickson MabonDetails of wells drilled under offshore licences are contained in Appendix 1 to the Brown Book published by my Department in April last. The total cost of drilling these wells is not available.
The present average cost of drilling in the northern part of the North Sea is of the order of £3 million per well; thus the cost to British National Oil Corporation of participating to the extent of 51 per cent. in 30 such wells would be about £46 million in 1976 prices.
§ Mr. Biggs-Davisonasked the Secretary if State for Energy whether the licencee for exploration for oil and gas in parts of Essex has begun operations; who he is; what his plans are; and what the Department's policy is.
§ Mr. BennA surface gravity survey over a licensed area including the northwest corner of Essex was carried out by the licensee, Shell UK Ltd. earlier this year; there are no plans at present for any further operations extending into Essex. The terms of licences are designed to encourage exploratory work to be completed as soon as possible.