§ Mr. Skeetasked the Chancellor of the Exchequer, assuming the continuance of prices for North Sea oil to be 85W within the range of $31 to $34 a barrel, what he calculates will be the rate of return of licensees where the costs of provision are between $20 and $25 per barrel.
§ Mr. GrayI have been asked to reply.
Information relating to the costs and profitability of individual North Sea oilfields is supplied to the Department on a confidential basis and cannot be divulged. Within any particular range of costs, the return to the licensee will vary considerably as a result of a number of factors including the corporation tax position of the individual licensee, the phasing of investment and production, and the way the field is financed.
§ Mr. Skeetasked the Chancellor of the Exchequer whether the safeguard provisions provided by the Oil Taxation Act 1975 as amended will be extended to apply to the payments of royalty.