The British government will seek exemption for oil and gas operations on the U.K. continental shelf from the European Community's utilities directive.
Under this directive, offshore operators would become involved in a system for seeking and awarding contracts worth more than 400,000 European currency units ($327,000).
U.K. offshore operators have been concerned about the added costs this highly regulated system would spawn and have lobbied against the scheme through the United Kingdom Offshore Operators Association.
The EC wants to introduce the ordering procedure among publicly and privately owned companies in the marine, transportation, telecommunications, and energy industries so all European companies are given an equal opportunity to bid for work.
The directive is to go into force Jan. 1, 1993. The British government has until July 1 to seek an exemption for the offshore industry.
The government said it decided to seek exemption following extensive talks with oil companies, suppliers, and trade unions. Their overwhelming view was that the U.K. should apply for exemption.
The decision, the government said, is fully in accord with its drive to reduce the burdens on industry and contribute to cost control and increased efficiency.
The goal is to ensure that bureaucratic control on industries involved in U.K. exploration and production are minimized and potential delays or costs, especially to marginal offshore projects, are avoided.
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