§ Mr. Dempseyasked the Secretary of State for Energy whether he has reached any further participation agreement.
§ Mr. Benn, pursuant to the reply [Official Report, 21st December 1976; Vol. 923, c. 123], gave the following information:
Her Majesty's Government, the British National Oil Corporation (BNOC), Amoco, Texas Eastern and Amerada Hess have today signed Memoranda of Principles setting out the arrangements to be concluded between them to give effect to Her Majesty's Government's policy of securing majority State participation in the Montrose field.
The arrangements with Amoco are very similar to those already agreed in 486W principle with other major oil companies with significant refining and marketing interests in the United Kingdom. The arrangements with Texas Eastern and Amerada Hess which relate solely to their interests in the Montrose field are almost identical to the Memoranda signed with them on 25th January 1977 covering the Beryl field. As a result of the Memoranda signed today, the State will have access to 51 per cent. of petroleum production from Montrose after taking into account the British Gas Corporation's existing licence interest in that field.
BNOC's rights to take petroleum, at market price, will apply to up to 29 per cent. of the production attributable to the interests of Amoco, Texas Eastern and Amerada Hess, and in the case of Amoco will be subject to certain rights of repurchase. BNOC will become a joint holder of licences PO19 and PO20, and will have the right to information and an effective voice in field operations, with specific voting rights under the Montrose operating agreement.
The three companies have each agreed to maintain effective and regular consultation with Her Majesty's Government, advised by BNOC, on all matters of concern to either party arising from their petroleum operations in the United Kingdom. Amoco has also declared its intention to use any UKCS oil from its finds under existing licences in support of its United Kingdom feedstock requirements; to optimise use of UKCS oil in relation to its United Kingdom market; and to conduct trade in crude oil or products at the best price obtainable, using best endeavours to safeguard United Kingdom Government petroleum revenues and so as to maximise the benefit to the United Kingdom balance of payments. The memorandum also provides the basis for majority State participation in future commercial finds under licences held by Amoco.