HC Deb 06 February 1980 vol 978 cc262-3W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer what is the current representative price of North Sea oil; and if he will circulate in the Official Report a table showing the amount of tax, including royalty oil and so on, now payable on each barrel on the assumption that depreciation and other initial allowances have been exhausted.

Mr. Peter Rees

BNOC has set a selling price of $29.75/barrel for Forties crude with small variations—of less than $1—because of quality and other differentials, for other North Sea crudes. The Government revenue from an incremental barrel of production without any costs or allowances isCash value of 12½ per cent. royalty, 12½ per cent.; 60 per cent. PRT, 52½ per cent.; 52 per cent. Corporation Tax, 18.2 per cent.: Total 83.2 per cent. Almost $25 of the $29.75 selling price of a marginal barrel would thus accrue to the Government, although the different components would be received at different times.