§ Mr. Campbellasked the Secretary of State for Energy what recent progress has been made in participation negotiations with companies involved in North Sea oil development.
§ Dr. Mabon,pursuant to his reply [Official Report, 10th July 1978; Vol. 953, c. 348], gave the following further information:
740WToday I signed definitive participation agreements with the British National Oil Corporation, Amerada Exploration Limited and Amerada Petroleum Corporation of the United Kingdom Limited and Texas Eastern (UK) Limited and North Sea Inc.
The agreements will apply to the companies' interests in the Fulmer field and also to any further fields in the UKCS that the companies may develop under their first to fourth round licences, but not to their interests in the Beryl and Montrose fields for which separate participation agreements were signed on 5th April and 4th May respectively.
Under the new agreements BNOC will have an option over up to 51 per cent. of each company's share of petroleum production against payment of market price. Any equity interest held by the British Gas Corporation will be taken into account in calculating the amount of petroleum to which BNOC is entitled. BNOC will become a co-licensee with the companies and will have an effective voice and vote on all operating committees.
I am placing a summary of the agreements in the Library of the House.