§ Dr. John A. Cunninghamasked the Secretary of State for Energy what progress is being made with finance and participation negotiations in respect of Tricentrol's interest in the Thistle Field; and if he will make a statement.
§ Mr. BennFollowing my predecessor's statement in the House on 30th April 1975 the Government and BNOC have today concluded a participation agreement with Tricentrol. The Government have also today successfully completed arrangements which will further facilitate the development of the important Thistle Field in the North Sea. The Government have guaranteed a development loan of £60 million for Tricentrol Thistle Development Limited, managed by N. M. Rothschild & Sons Limited and Barclays Merchant Bank Limited. This loan is initially guaranteed under Section 42 of the Petroleum and Submarine Pipelines Act 1975. The guarantee runs until 31st December 1980, and if it is not called before then, it lapses. This guarantee may be released if certain conditions, chiefly, the attainment of a satisfactory level of production, are met, and subsumes the earlier interim guarantees for bridging finance announced to the House. The Government will receive a fee payable in the form of a royalty on Tricentrol's original interest in production over the life of the Thistle Field. The amount of the royalty will depend on the amount of guaranteed moneys outstanding and the time during which they are outstanding. The minimum royalty payable, which has already been earned through the assumption of risk on the issue of the interim guarantees, is 5 per cent. of the value of Tricentrol's original share of production over the life of the field. This 5 per cent. can be taken in 489W oil. The final calculation of the royalty to be paid to the Government will be performed when the guarantee is finally released: however 5 per cent. royalty in cash or kind will be payable from the beginning of production. I am arranging to lay a statement before each House of Parliament in accordance with Section 42(3) of the Petroleum and Submarine Pipelines Act.
The Government and BNOC have concluded a participation agreement with Tricentrol which was also completed today. Through this Tricentrol, with the agreement of their partners in the field, will assign 51 per cent. of their interest in the Thistle Field and associated areas to BNOC, who will thereby obtain a seat and 51 per cent. of Tricentrol's vote on the Thistle Unit and Halibut Operating Committees. BNOC will also have an option to take 51 per cent. of Tricentrol's oil at market price at any time from the start of production. The Secretary
WORLD ENERGY PRODUCTION Proportion of total provided by Total (million tonnes coal equivalent) Coal and lignite Per cent. Crude petroleum Per cent. Natural gas Per cent. Hydro and Nuclear electricity Per cent. 1973 … … … 8,485 29 50 19 2 1972 … … … 8,046 30 48 20 2 1971 … … … 7,687 31 48 19 2 SourceWorld Energy Supplies 1970–73 (United Nations Statistical Papers, Series J No. 18).