Offshore Oil and Gas Facilities (Hansard, 12 February 2004)

§ Mr. Nicholas Brown
To ask the Secretary of State for Trade and Industry (1) what percentage of man hours involved in the construction of offshore oil and gas facilities destined for UK waters are required by her Department to be based in the UK; [154267]
(2) what regulatory regime governs the UK labour content of the construction of facilities for the oil and gas industries based on the UK continental shelf. [154268]

§ Mr. Timms
DTI's Energy Group does not stipulate the involvement of UK nationals, or UK companies, when awarding licences under the Petroleum Act.
Procurement in relation to hydrocarbon exploration and production is a matter solely for the field operator whose actions are governed by The Utilities Contracts Regulations 1996 which require competitive tendering processes.
Government support the principle of competitive tendering within Europe—as its use is essential if the cost of development on the UK's maturing continental shelf is to be reduced.
DTI works with the industry supply chain in this sector, to improve competitiveness, particularly of UK-based fabricators. These companies, where they have the capability, have won, in open market competition, around two thirds of the value of the contracts on recent UKCS developments.

§ Mr. Nicholas Brown
To ask the Secretary of State for Trade and Industry what representations she has made to the European Commission concerning fair competition in the supply of installations for the gas and oil industry on the UK continental shelf. [154271]

§ Mr. Timms
DTI has, in recent times, made no interventions with, or representations to, the European Commission concerning fair competition in the supply of installations for the gas and oil industry on the UKCS. However I would be very concerned should there be any anti-competitive behaviour in this sector. If officials are supplied with clear evidence of anti-competitive practise, such as illegal subsidies or abuse of a dominant market position, the matter will be taken to the commission urgently. The commission would need clear evidence of such practices to take action.

§ Mr. Nicholas Brown
To ask the Secretary of State for Trade and Industry what the principal conditions attached to the licence issued by her Department to EnCana to develop the Buzzard field in the North Sea were. [154273]

§ Mr. Timms
The Buzzard field extends into acreage covered by two Petroleum Act Licences: P928, awarded in 1995, and P986, awarded in 1998. Both of these licences were issued on the terms and conditions that were standard for Seaward Production Licences at the time: for instance, a six-year initial term, to be followed by a 12-year second term and an 18-year final term. Neither was issued to EnCana in the first instance.
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The principal conditions of P928 are based, subject to minor amendments, on the Model Clauses set out in Schedule 4 to the Petroleum (Production) (Seaward Areas) Regulations 1988 (S.I. 1988 no. 1213), as amended by the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1990 (S.I. 1990 no. 1332) and the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1992 (S.I. 1992 no. 2378).
The principal conditions of P986 are based, subject to minor amendments, on the Model Clauses set out in Schedule 4 to the Petroleum (Production) (Seaward Areas) Regulations 1988 (S.I. 1988 no. 1213), as amended by Offshore Safety Act 1992 and the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1995 (S.I. 1995 no. 1435) and the Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1996 (S.I. 1996 no. 2946), except for the amendments made by Regulations 8(a) (ii) and 8(c) to 8(h).
Both licences were additionally subject to a series of conditions specific to the particular acreage. These appeared under the headings: "Environmental Seismic/ Drilling", "Oil-spills", "Defence and National Security Matters" and "Fisheries, Shipping and other Interests" in the case of P928; and "General", "Environmental! Seismic and Drilling", "Oil spills", and "Fisheries and other interests" in the case of P986.
The Buzzard field development was granted consent in 2003, subject to standard conditions that are common to such consents.

§ Mr. Nicholas Brown
To ask the Secretary of State for Trade and Industry what arrangements are in place to enforce European Union health and safety at work standards at each stage of the construction and installation process in projects for Britain's offshore oil and gas industries; and what the relationship is between health and safety legislation and her Department's licensing regime. [154284]

§ Mr. Timms
European Union health and safety at work standards, as set out in EU Directives, are implemented in Great Britain and in respect of the UK offshore oil and gas industries through the Health and Safety at Work etc. Act 1974 and subordinate health and safety regulations. This legislation is enforced by the Health and Safety Executive. The legislation is entirely separate from DTI's licensing regime under the Petroleum Act.