No C 325/6 Official Journal of the European Communities 6.12. 84 
COMMISSION 
Proposal for a Council Regulation on a programme of support for technological 
development in the hydrocarbons sector 
COM(84) 658 final 
(Submitted by the Commission to the Council on 26 November 1984) 
(84/C 325/06) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the setting up of a common energy policy is 
one of the objectives which the Communities have set 
themselves; whereas it is for the Commission to 
propose the measures to be taken to that end; 
whereas the Council accordingly adopted Regulation 
(EEC) No 3056/73 of 9 November 1973 on the 
support of Community projects in the hydrocarbons 
sector ('); 
Whereas, in view of the importance of hydrocarbons 
in the Community's energy supplies and the 
Community's dependence on imports, it is a 
fundamental objective of such a policy to secure 
conditions ensuring long-term security of supply; 
Whereas encouragement for technological 
development activities directly connected with hydro­
carbons exploration, production, storage or transpor­
tation activities is such as to improve the security of 
supply and could therefore be a means of achieving 
such a policy; 
Whereas the primary responsibility for financing such 
activities lies with the petroleum industry; whereas, 
however, in view of the considerable risks and 
investments which such activities entail, provision 
should be made for the Community to grant them 
support, especially to the extent that it makes it 
possible to carry out certain projects more quickly; 
0) OJ No L 312, 13. 11. 1973, p. 1. Whereas technological development activities can be 
differentiated from research activities, although some 
phases of technological development projects may 
include a certain degree of research; 
Whereas Community support may encourage the 
pooling of efforts by undertakings in two or more 
Member States; 
Whereas service undertakings and equipment-
construction undertakings play an important role in 
these technological development acitivities; 
Whereas projects which are of fundamental 
importance for the security of the Community's 
hydrocarbons supplies and which relate to 
technological development activities directly 
connected with exploration, production, storage or 
transportation activities could qualify for such 
support; whereas this support should be financial in 
character; 
Whereas the specifically international character of the 
structure and activities of the undertakings operating 
in the hydrocarbons sector justifies direct transmission 
of the project dossiers to the Commission; 
Whereas an advisory committee made up of rep­
resentatives from the Member States can assist the 
Commission in the selection of the projects to which 
support is to be granted; 
Whereas the granting by the Community of the 
advantages envisaged must not affect the conditions 
of competition in a manner incompatible with the 
relevant provisions of the Treaty; 
Whereas the Community must have at its disposal 
every appropriate means of assessing, case by case, 
the likely benefits of such projects and their 
compatibility with the objectives of Community 
energy policy; 
Whereas, to this end, those benefiting should take on 
obligations towards the Community in return for the 
advantages which they are to be granted; 
Whereas the Commission has evaluated the 
programme which was set up and has been 
6.12.84 Official Journal of the European Communities No C 325/7 
implemented since 1974 under Regulation (EEC) No 
3056/73 in reports which it has submitted to the 
Council and the European Parliament on the 
application of that Regulation; whereas this 
evaluation has shown that the programme should be 
continued and adapted in the light of the experience 
gained; whereas this adaptation concerns essentially 
the duration of the programme, the decision-making 
process, the definition of priority objectives and the 
procedure for implementing the programme; 
Whereas the Treaty does not provide the powers 
necessary for this purpose, 
HAS ADOPTED THIS REGULATION: 
Article 1 
The Community may grant financial support for the 
carrying out of projects in the areas defined in Article 
2 which are of fundamental importance for the 
security of its hydrocarbons supplies. 
Article 2 
1. For the purposes of this Regulation, 
'technological development projects in the hydro­
carbons sector' (hereinafter referred to as 'projects') 
means projects relating to exploration, production, 
storage or transportation activities in the hydro­
carbons sector which satisfy the following conditions: 
— they develop innovatory techniques, processes or 
products or exploit a new application of 
techniques, processes or products whose research 
stage is completed, 
— they offer prospects of industrial and commercial 
viability, 
— they present difficulties with regard to finance 
because of the considerable technical and 
economic risks involved, to the extent that they 
would very probably not be carried out without 
Community financial support. 
2. The prospects may be carried out within or 
outside the territory of the Community. 
3. Financial support may be granted for a project 
as a whole or for the various stages of a project. 
Article 3 
All projects shall be the responsibility of a natural 
person or a legal person constituted in accordance 
with the laws of the Member States. 
If the creation of a legal entity with the legal capacity 
to carry out a project involves additional costs for the participating undertakings, the project may be carried 
out simply on the basis of cooperation between 
natural or legal persons. In that case, such persons 
shall be jointly and severally liable for the obligations 
resulting from Community support. 
Article 4 
1. Support for a project shall take the form of a 
Community financial contribution, granted under the 
conditions laid down in Articles 4 (2) and (3), 5, 6 
and 7. 
2. Support shall not exceed 49 % of the eligible 
cost of the project. When determining the amount of 
support to be granted, the Commission shall take into 
account other financial aid for the project received or 
expected from Community, national or other sources 
and the share of the risk borne directly by those 
responsible for the project. 
3. The level of support shall be determined for 
each project individually, in accordance with the 
procedure laid down in Article 5. 
Article 5 
1. Every project submitted by individuals or under­
takings in the Community following an invitation to 
submit projects published in the Official Journal of the 
European Communities shall be examined by the 
Commission on the basis of the following information 
to be provided by the applicants: 
— a detailed description of the project, including the 
organization of its management, 
— the importance of the project for the security of 
the Community's hydrocarbons supplies, 
— the nature and extent of the technical and 
economic risks inherent in the project, 
— the cost of the project, its expected profitability 
and the financing arrangements proposed, 
— the time-scale for carrying out the project, 
— the financial situation and technical capabilities of 
the person or persons responsible for the project, 
— details of any form of cooperation envisaged with 
other undertakings in the Community or non-
member countries, 
— details of any financial aid which the project has 
received at an earlier stage of research and 
development from the Community or the Member 
States, 
No C 325/8 Official Journal of the European Communities 6.12.84 
— details of any other measure of financial support, 
adopted or expected from the Member States or 
the Community, 
— an assessment of any possible impact on the safety 
of persons and on the environment, 
— any other factor which may justify the 
Community support requested. 
2. The Commission shall decide whether to grant 
support for projects after consulting an advisory 
committee made up of representatives from the 
Member States. 
The committee, chaired by a representative of the 
Commission, shall draw up its rules of procedure. 
3. As a general rule, preference shall be given to 
those projects involving the association of at least two 
independent companies which are not established in 
the same Member State. 
Article 6 
The support granted by the Community must not 
affect the conditions of competition in a manner 
incompatible with the relevant provisions of the 
Treaty. 
Article 7 
1. The Commission shall negotiate and conclude 
the contracts necessary for the execution of projects 
selected in accordance with the procedure laid down 
in Article 5 (2). To that end, it shall draw up a model 
contract setting forth the rights and obligations of 
each party and in particular the procedures for any 
repayment of financial support granted and for access 
to and dissemination, as well as utilization, of 
knowledge. 
2. The person or persons responsible for executing 
a project in receipt of Community support shall send 
the Commission every six months or at its request a 
report on the fulfilment of contractual obligations 
towards the Commission and in particular on the 
progress of work on the project and the expenditure 
incurred in carrying it out. 
3. The Commission may have checks carried out 
on the spot and on the basis of documents enabling it 
to monitor the performance of the contract and in 
particular the progress and execution of the project. Throughout the duration of the work and during the 
five years following its completion, the Commission 
and the Court of Auditors, or their representatives, 
shall have access to the accounts relating to the 
project for which support has been granted. 
Documents relating to the projects must be preserved 
during the same period. 
4. Where the extent of Community financial 
support and the size of the project so warrant, the 
Commission may participate as an observer in 
meetings of the bodies responsible for the 
management of projects, if the contract so provides. 
Article 8 
The information gathered pursuant to this Regulation 
shall be confidential. 
Article 9 
A regular report shall be made by the Commission to 
the Council and to the European Parliament on the 
application of this Regulation. 
Article 10 
The appropriations allocated as financial support 
pursuant to this Regulation shall be entered in the 
general budget of the European Communities. 
The total amount of appropriations which is regarded 
as necessary for the period 1 January 1985 to 31 
December 1989 pursuant to this Regulation is 200 
million ECU. 
Article 11 
Regulation (EEC) No 3056/73 is hereby repealed. 
However, Regulation (EEC) No 3056/73 shall 
continue to apply in respect of projects submitted in 
response to invitations to submit projects published 
pursuant to that Regulation. 
Article 12 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities. 
It shall apply until 31 December 1989. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.