Offshore Licensing (Sixth Round) (Hansard, 2 August 1978)

§ Mr. Benn,

pursuant to the reply [Official Report, 5th July 1978; Vol. 953. c. 183], gave the following further information:

I have now completed consultations about the proposed arrangements for the sixth round, which I announced to the House on 10th May. The formal invitation of applications will be published in the Official Gazette soon. I will be putting a total of 46 blocks on offer. The closing date for applications will be 12 noon on 20th November 1978.

The detailed arrangements for the round are set out in the advance text of the Gazette notice, copies of which have been lodged in the Library of the House, with a map showing the blocks on offer. These broadly follow the consultative documents on the sixth round, but I have introduced 335W some adjustments, described below, following consultation with interested parties.

First, it is important that the work force on offshore installations should be represented in accordance with its wishes, and I have therefore included progress in this regard as one of the factors I shall take into account in examining applications.

Secondly, I have decided to identify now the blocks where BNOC is to be appointed operator.

Thirdly, for the blocks where it is operator, BNOC will contribute its share of exploration and appraisal costs as they are incurred.

Fourthly, when BNOC elects to join in a discovery of a block where its share of costs has been wholly or partly carried, the corporation will on reimbursing its carried share of exploration and appraisal costs incurred on that block, pay interest on those reimbursed costs.

Fifthly, I have decided to increase to twelve months the period of notice which BNOC will give of the exercise of any option made available to it by its partners to require them to take some or all of its share of production.

Finally, I have introduced fuller details about the timing of re-imbursement, and about market price, in the guidelines for joint operating agreements.