§ Mr. Dempseyasked the Secretary of State for Energy whether he has reached any further participation agreement.
§ Dr. J. Dickson Mabon,pursuant to his reply [Official Report, 21st December 1976; Vol. 923, c. 123], gave the following further information:
Her Majesty's Government and the British National Oil Corporation (BNOC), have today concluded heads of agreements 618W on the terms for participation with the companies for which Pan Ocean Oil Corporation is operator in respect of any commercial petroleum development under licence P108 in Block 16/7a, which includes the Brae field. It is intended that fully-termed definitive agreements based on the heads should be signed within 150 days, although no decision to develop a field in Block 16/7a has yet been taken. The definitive agreements will not become effective until commercial development is undertaken.
The companies with interests in Block 16/7a are: Pan Ocean (32 per cent.); Bow Valley (14 per cent.), Ashland Oil (GB) (6.3 per cent.), Ashland Oil (Canada) (1.4 per cent.), LL & E (6.3 per cent.), Sunningdale (8 per cent.), Saga (4 per cent.), Siebens (8 per cent.). The balance of the interest in Block 16/7a (20 per cent.) is held by BNOC(Ex).
Under the agreed terms, BNOC will have an option to obtain, take, and own at market prices, a percentage of all petroleum won and saved attributable to each company's interests in Block 16/7a, which taken together with the BNOC(Ex) equity interest, will make available to BNOC up to 51 per cent. of all petroleum won and saved from the block. The terms provide also for BNOC to have an effective voice and a specific vote in the management of field operations in addition to that of BNOC(Ex).