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Oil Industry (Government Participation)

Volume 884: debated on Wednesday 22 January 1975

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asked the Secretary of State for Energy on what basis profits will accrue to the Government as a result of their purchase of majority shareholdings in the North Sea oil activities of oil companies.

The State will acquire ownership of a specified proportion of the oil from commercial oilfields meeting the same proportion of costs. The exact basis will depend upon the outcome of the negotiations with the companies.

asked the Secretary of State for Energy what steps are being taken to ensure that profits accruing to the Government as a result of the purchase of majority shareholdings in the North Sea oil activities of oil companies will not be diminished by the writing-off of development cost properly attributable to their activities in other parts of the world against their North Sea activities.

There is no possibility that participation profits will be diminished in this way.