§ Mr. Dempseyasked the Secretary of State for Energy if he will make a statement on the latest development concerning BNOC's dollar financing scheme.
§ Mr. BennUnder the agreement entered into in June 1977 BNOC raised $825 million by means of a forward sale of oil to BritOil, a non-subsidiary company incorporated in the U.S. BritOil was funded by a consortium of banks, $1506W million in Eurodollars and $675 million in U.S. dollars. On 1st November BNOC reduced its obligations to BritOil by funding the prepayment of the $150 million Eurodollar element together with accrued interest. BNOC's decision was made with my full agreement and is fully consistent with Her Majesty's Government's policy for the management of public sector overseas liabilities as set out by the Chancellor of the Exchequer in his Budget Speech earlier this year. BNOC has funded this prepayment by BritOil by drawing on the funds available to it from the National Oil Account.