HC Deb 18 October 1976 vol 917 cc329-30W
Mr. James Lamond

asked the Chancellor of the Exchequer whether he will publish in the Official Report the assurances given to BP in connection with its agreement to the principles governing a 51 per cent. BNOC participate in BP's commercial oilfields on the United Kingdom continental shelf.

Mr. Joel Barnett

The following is the text of a letter which my right hon. Friend the Chancellor of the Exchequer sent to the Chairman of BP on 1st July 1976I understand that at the discussion at Sunningdale on 27th and 28th June which led to the initialling of a memorandum of principles by representatives of HM Government, the British National Oil Corporation and the British Petroleum Company Limited, the Company raised the question of the relationship between HM Government and the Company. The Secretary of State made clear to you at Sunningdale that the relationship has tradi- tionally been maintained in a way which has not breached the practice of non-intervention in the administration of the Company as a commercial concern, and that the Government considers that the proposed arrangement is wholly compatible both with this traditional relationship and with the underlying principles on which it is founded.