HC Deb 26 March 1984 vol 57 cc48-9W
Mr. Frank Field

asked the Secretary of State for Energy (1) when Sun Oil told him that it was placing the rig order for developing the Balmoral field with a foreign yard;

(2) if Sun Oil gave him an undertaking to build 72 per cent. of its rig construction in the United Kingdom as well as committing itself to place 72 per cent. of work resulting from the development of the Balmoral field with firms in the United Kingdom; and if he will make a statement;

(3) what steps he is taking to monitor the amount of work Sun Oil places with firms in the United Kingdom resulting from its development of the Balmoral field;

(4) if he is satisfied with the negotiations Sun Oil has so far had with his Department over its development of the Balmoral field; and if he will make a statement;

(5) if he will publish the minutes of the meetings he has held with Sun Oil over its development of the Balmoral field;

(6) if he will publish in the Official Report the correspondence he has had with Sun Oil over its development of the Balmoral field.

Mr. Buchanan-Smith

At a meeting last September, Sun Oil gave me an assurance that it would achieve an overall United Kingdom content of more than 70 per cent. on its Balmoral project although that did not relate to any specific contract. I was also told that it expected the floating production facility would be built in the United Kingdom.

Sun Oil formally advised me on 15 March of its decision to place the rig order with the Swedish company, Gotaverken Arendal.

I am not satisfied that the company has given British yards a full and fair opportunity to bid for the rig order. My Department will monitor very carefully Sun Oil's performance in carrying out its plans over the entire development of the Balmoral project.