UK NOT CONSIDERING RESTRICTING OIL OUTPUT
Britain is not considering any
restriction of its present oil production, UK Energy Minister
Alick Buchanan-Smith said.
     Speaking to reporters at the Offshore Technology
Conference, Buchanan-Smith said, "No, we've made that
absolutely clear, we see no reason for changing (the production
level)."
     Earlier today, Buchanan-Smith gave the go-ahead to Mobil
Corp for two new North Sea developments -- the Ness oil field
and Beryl B subsea water injection project -- totalling 96 mln
dlrs (60 mln British pounds).
     Unlike Norway, which has restricted its production of
North Sea oil by 80,000 barrels a day in an effort to stabilize
world oil prices, Britain has consistently refused to intervene
in the market place.
     Buchanan-Smith also said there may be a demand-supply gap
in the 1990s for natural gas in Britain, but added that it
would probably be less than had been previously estimated.
     Norway is a major producer of natural gas and this morning
Norway's Energy Minister Arne Oien said he was hoping Britain
will take more Norwegian gas in the 1990s.
     Buchanan-Smith also said he expects to announce the
results of the 10th licensing round of North Sea tracts next
month.
     He said there had been 75 applications for 127 tracts by
84 companies, and added that he expects about 50 blocks will be
licensed.
     He said the results would be in line with rounds prior to
but not equal to the ninth two years ago, which was one of the
most successful ever.
 Reuter
