§ Mr. Peter Griffithsasked the Secretary of State for Energy whether he will make a statement about the transfer of the British National Oil Corporation's oil-producing business to Britoil.
§ Mr. LawsonThe British National Oil Corporation, acting under direction, made a scheme on 15 July to transfer its oil producing business to Britoil. I have approved the scheme with modifications and specified that it shall come into force on 1 August 1982.
The scheme includes participation arrangements between Britoil and BNOC. I am placing in the Libraries of both Houses a summary of these arrangements, in accordance with my undertaking of 24 June.—[Vol. 26, c. 472.]
I have also given consent to a guarantee by BNOC of Britoil's performance of its obligations under the forward oil purchase agreement entered into in 1977. This will cover the period before privatisation in which Britoil continues to be a wholly owned subsidiary of the corporation.