Gas Fields (Hansard, 15 October 1990)

§ Mr. Salmond
To ask the Secretary of State for energy whether any of the additional costs of taking the proposed central area transmission system pipeline to Teesside, rather than the shorter route to a landfall at St. Fergus, will be met from public funds by offsets against petroleum revenue tax, and if he will make a statement.

§ Mr. Moynihan
The petroleum revenue tax liabilities and reliefs of companies participating in the proposed central area transmission system would fall to be assessed in due time by the oil taxation office in the light of the actual costs of the project and the revenues it earned. If the cost of the proposed pipeline is admissible for petroleum revenue tax relief, this would apply to a landfall at either Teesside or St. Fergus.

§ Mr. Salmond
To ask the Secretary of State for Energy (1) if there are any plans to develop the Drake, Maggie or Hawkins fields; and if he will give details;
(2) if he has had any discussions about, or received any applications under annex B, for the development of the Maggie, Drake or Hawkins fields.

§ Mr. Moynihan
No such plans or applications have yet been received by my Department; neither has the Department had recent discussions with any of the operators concerned about possible development of the fields.

§ Mr. Salmond
To ask the Secretary of State for Energy (1) if he will give details of any requirement upon companies developing gas fields to recover gas condensate and of any regulations relating to this; and if he will make a statement;
(2) if he will give details of any guidance issued to companies developing gas fields about or relating to the recovery of gas condensate; and if he will make a statement.

§ Mr. Moynihan
In considering plans for the development of gas fields on the UKCS my Department seeks to ensure that, where it is economic to do so, all hydrocarbons, including condensate liquids, will be recovered to the maximum extent that is technically achievable. Since the optimum recovery procedure differs from field to field, the Department bases its discussions with operators on specific technical studies of the individual field concerned. In addition my officials have regularly participated in conferences and specialist seminars at which general guidance has been provided to the industry on the Department's criteria for the development of reservoirs containing condensate liquids.