§ Mr. Kenneth Carlisleasked the Secretary of State for Energy what role he sees for the British Gas Corporation in the eighth round of offshore licensing.
§ Mr. LawsonThe British Gas Corporation will be free to apply for territory in the eighth round in competition with other applicants. I have, however, informed the corporation that I will expect it, in applying for the new licences, to confine its aims strictly to searching for gas as envisaged by the powers granted to the corporation under section 2(2) of the Gas Act 1972 and to limit accordingly its applications, whether made solely or as a part of a consortium, to areas of gas prospectivity. This will be one of the principal factors I shall have in mind in judging, in the light of the geological evidence, any eighth round applications from the corporation, or from any consortia including the corporation. I have already announced that I shall be requiring the British Gas Corporation to dispose of its existing oil production assets. Similarly, the corporation would be required to dispose of any oil discoveries it might make while searching for gas under any eighth round licences awarded to it.