HC Deb 19 January 1977 vol 924 c217W
Mr. Skeet

asked the Secretary of State for Energy what is intended to be the term of the Shell-Esso participation agreement; and whether it is intended that the 100 per cent. buy-back provisions should be limited only by the life of the oil fields.

Dr. J. Dickson Mabon

The Memoranda of Principles agreed with Shell and Esso cover the lifetime of present and future commercial fields under the Companies' existing licences. The term of the agreements will be only one of the conditions attaching to the buy-back provisions.

Mr. Skeet

asked the Secretary of State for Energy under the Shell-Esso participation agreement at what price it is intended that BNOC should purchase the North Sea crude oil; and how that price is to be determined.

Dr. J. Dickson Mabon

The Memoranda of Principles agreed with Shell and Esso provide for BNOC to pay market price for any oil taken under the participation agreements. The mechanism for determining that price will be settled in drawing up binding agreements.

Mr. Skeet

asked the Secretary of State for Energy under the Shell-Esso participation agreement at what price it is intended that the petroleum companies should repurchase the crude oil from the BNOC; and whether any fee or commission is intended on the resale.

Dr. J. Dickson Mabon

The Memoranda of Principles agreed with Shell and Esso provide for the companies to repurchase crude oil at the same market price as BNOC pays them for crude oil.

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