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COM (83) 571 
 
 
 
Vol. 1983/0 216 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C O M(83) 5 7 1 fin a l
Brussels, 4  October 1983
R E P O R T  F R O M  T H E  C O M M IS S IO N  T O  T H E  E U R O P E A N  P A R LIA M E N T
A N D  T H E  C O U N C IL
on the application of Regulation (EEC ) N o  3056/3 on the support of 
Community projects in the hydrocarbons sector
(Application of A rticle 10 of the above Regulation)
COM(83) 571 final

CONTENTS
i '  '  .  'P age
I.  I N T R O D U C T I O N ’  ■ ''■ ■  1
II. I M P L E M E N T A T I O N  O F  P R O G R A M M E 1;:y ft
III. P R E L I M I N A R Y  R E S U L T S  •  ' .  ,-si 5 '■
IV . D I S S E M I N A T I O N  O F  I N F O R M A T I O N 6
V . F I N A N C I A L  S I T U A T I O N 6
V I. C O N C L U S I O N S • 9
VII.  A N N E X  I  - T A B L E  1 1 0
T A B L E  2 1 1
T A B L E  3 1 3
T A B L E  A 1 4
VIII. A N N E X  II - T E C H N I C A L  R E S U L T S  O F  T H E  P R O J E C T S 1 5

1 ·. O n  9  November 1973 the Council of the European Communities adopted
Regulation (E E C ) No. 3056/73 on the support of Community projects in
1),  the hydrocarbons sector .
2. The subsidies granted under the Regulation, repayable i f  the results 
of the project are exploited commercially, are intended to promote 
such a ctivitie s of prospecting fo r, producing, storing, or transport­
ing hydrocarbons as are lik e ly  to improve the security of the Community's 
energy supplies.
3. Pursuant to A rticle 10 of Regulation 3056/73, which provides that 
"the Commission shall submit an annual report on the application of 
this Regulation to the European Parliament and the Council, which shall 
express its  opinion on the report", the f ir s t  report covering the imple­
mentation of the fir s t series of projects granted financial support,
w as published in December 1976^. A  symposium in Luxembourg in April 
1979 highlighted the f ir s t results attained. The detailed record of 
the symposium w as published in two volumes „ A  further report appeared 
in M a y  1980^ and June 19821  2  3  *  5^, and the present report analyses the progress 
m a d e  in implementing this support programme up to 3 1  December 1982.
I I. IM P LE M E N TA TIO N  . O F  P R O G R A M M E
A . Since 1973, 460 Projects promoted by 110 Community businesses have
beep submitted in reply to the Commission's eight invitations to apply for 
financial support.I. INTRODUCTION
1) 0J L  312 of 13 November 1973
2) C 0 M C 7 6 ) 709 Final
3 ) Doc. E U R  6299
A ) C 0 M C 8 0 ) 260 Final
5) C0M(82)374 Final
.12

-  2 -
Following a  Commission proposal, the Council granted a  total of 
285 mi'■Lion E C U  in financial support to cover the completion of
•  281 of these projects . O n  average the Community provided 352
of the finance for each project.
5. The Regulation provided that any financial support granted could 
take the form of loans, loan guarantees, or subsidies repayable 
under certain conditions, in fact, the formula applied to a ll 
the contracts w as that of a  subsidy repayable in the event of the 
results of the project being commercially exploited.
6. In accordance with Art. 5.2 of the Regulation, the main c rite ria  used 
by the Commission in selecting projects to submit to the Council were 
as follows:
i) The contribution the project would make towards increasing 
the Community's resources in hydrocarbons;
ii) the amount of innovative technology .to be used as compared 
with the state of the a rt; •
i i i )  the nature and extent of the risks involved and the project's 
estimated p ro fita b ility ;
iv) the technical capacities and financial situation of those res- ^  
ponsible for the project.
1 ) - Council Decision of 19 December 1974 on the support of Community projects 
ijn_the hydrocarbons sector (Doc. R/3600/74);
- Council Decision of 4  M ay 1976 on the support of Community projects in
the hydrocarbons sector (Doc. R/854/76); .  .
- Council Decision of 25 October 1977 on the support of Community projects 
in the hydrocarbons sector (Doc. R/2416/77);
- Council Decision of 30 October 1978 on the support of Community projects 
in the hydrocarbons sector (Doc. R/2671/78);
- Council Decision of 29 October 1979 on the granting of support for 
Community projects in the hydrocarbons sector (0J L  281 of 10 Nov. 1979);
-C ouncil Decision of 27 October 1980 on the granting of support for 
Community projects in the hydrocarbons sector (Doc. 10142/80 E N E R  111);
- Council Decision of 27 October 1981 on the granting of support for 
Community projects in the hydrocarbons sector (Doc. 10024/81 E N E R  114) .
- Council Decision of 28 July 1982 on-the granting of support for Community 
projects in the hydrocarbons sector (Doc. 8716/82 E N E R  125)
- Council Decision of 2 1  December 1982, complementary to the decision of 
28 July 1982 on the granting of support for Community projects in the 
hydrocarbons sector (Doc. 12031/82 E N E R  210)

- 3 -
The Commission fir s t ascertained that the projects would not have 
been undertaken or would have been subject to long delays had they 
not received financial assistance from the Community.
To avoid duplication by other techniques concurrently being developed, 
the Commission persuaded companies to cooperate and, where necessary, 
to form associations to carry out certain projects.
Finally, greater operating safety and the state in which installations 
had been maintained were also taken into account.
7. The amount of support granted, which under the Regulation w as not to 
ex'ceed 5 0 /4  of total investments, was fixed on the basis of the risks 
incurred in each project and the expected results as regards securing 
supplies.
Projects like ly to increase supplies substantially or to speed up the 
exploitation of the Community's resources received maximum support 
(40/4) . Transport and storage projects and projects for the development 
of services (which are important because they often help to eliminate 
obstacles to production) were given s lig h tly  lower rates of support 
(25 - 35/0 . In a ll cases the aim w as to achieve a  m u ltip lie r effect 
in order to lim it the Community's financial contribution to the 
m i nimum.
8. Support w as given to a ll aspects of advanced o il technology from 
geophysical prospecting to d rillin g  techniques and from production 
in deep water or d iffic u lt environments (p a rticu larly arctic zones) 
to pipeline transportation and underwater storage tanks.
In the last few years particular attention has been paid to enhanced 
recovery or heavy o il production techniques aimed at rapidly bringing 
into production resources in known deposits which have remained 
unexploited so far because there are no appropriate techniques.
.../ 4

- 4-
9. As can be seen from Annex I, Table 1, about 7 7 %  of the support m a d e  
available has gone to production techniques and 1 7 %  to transport;
,  the remainder has been divided between prospecting, exploration and 
storage. Enhanced recovery and the treatment of heavy o ils , the 
la tte r sector which received l i t t l e  support to start with, has n o w  
been granted 4 9 %  of the appropriations available in 1981 and 2 6 %  of the 
credits available in the last series of projects (1982).
10. Most of the companies receiving financial support (about 70% ) are in the o il 
related sector, i.e . engineering companies and manufacturers of 
special equipment .These companies have been responsible for the design 
and construction of o il installatio n s, whilst tria ls  under actual pr 
production conditions were carried out by the o il companies; the 
la tte r alone can decide on the c rite ria  to be satisfied by the 
engineers' technological developments and they own the o ilfie ld s  on 
which the equipment could be perfected.
III. PRELIM INARY R E S U L T S
11. A  project normally takes three to four years to complete and two more 
years are required before a  new technique can be exploited commercially. 
S o  far, therefore, any assessment of the results w ill be only partial 
and w ill cover only some  projects launched during the firs t four 
years (1974-1978).
"Th'è results' already seem  to be very substantial. A  detailed analysis 
is given in Annex II. Among  the most significant achievements the 
following are worth mentioning: ■  î ^  ;'f
a) the sub— sea pipeline laying tria ls  in the Straits of Messina and 
the S icilian Channel have resulted in a  completed sub-sea pipeline 
linking Algeria and Ita ly . The pipeline ca m e  into service at the 
end of 1981;
b) the in stallatio n  of d rillin g  equipment on board the dynamically 
positioned d r ill ships "Petrel", "Ben  Ocean Lancer" and "Pèlerin"
...15

- 5 -
which are capable of d rillin g  at sea at great depths (up to 
•  1,000 m); exploration programmes using these vessels began
in 1978;
c) in the fie ld  of deep-sea_ production, the use of articulated 
columns, floating platforms, risers and underwater storage 
containers, the results obtained so far also show that an 
underwater production system operated e ntirely by remote 
control is viable;
d) the completion of p ilo t projects involving the enhanced recovery 
of hydrocarbons; the data obtained should m ean that in the 
near future it w ill be possible to perfect industrial sale 
techniques for enhanced recovery, thereby improving the rate v 
of recovery from currently exploited fie ld s.
IV. DISSEM INATIO N O F  IN FO R M A TIO N
12. The information obtained by carrying out Community projects belongs 
to the company directing the project. Nevertheless, that company 
is expected to use a  significant part of the information obtained 
to the advantage of the Community, or to have it  so used by others. 
In particular,- the company undertakes to give p rio rity  to obtain­
ing for individuals of Community o rig in , and for Community companies 
the equipment and services based on these results, and to do so on 
non-discriminatory terms and conditions. The company also .under­
takes to use a ll appropriate methods to inform the above persons 
and companies of the a v a ila b ility  of the results.
13. To ensure a  wider dissemination of any results obtained, the 
Commission for its  part has used the following methods:
•- the symposium in Luxembourg in 1979, which was attended by about 
500 delegates from 25 d iffe re n t countries. In a ll, 72 reports 
and memoranda were presented and discussed at the symposium;
- the publication of progress reports on the various projects.
The most recent report of this type w ill be issued in April 1982;
./ 6

- 6 -
- the regular holding of special meetings to which are invited 
representatives of companies active in a  specific sector of the 
o il industry. At these meetings a  great deal of information is 
exchanged with a  view to getting companies to cooperate on certain 
projects.
V. FINANCIAL SITUATION
14. Figures setting out the financial situation with regard to the 
eight series of projects which have obtained Community support are '  
given in Annex I, Tables 2, 3  and A.
Commitments
15. With the exception of 543,644 u.a. in 1976 ( a  sum  corresponding 
to non-differentiated appropriations not used by the contractors) 
a ll appropriations for commitment entered in the budget have been 
used.
During the five years for which the programme has been running, 
Council decisions were never adopted u n til the end of the year 
which meant that large sum s were always_carried forward to the 
following financial year.
Since 1979 the date by which applications for support have to be 
submitted has been brought forward and the Commission's and Council's 
decision-making procedures have been speeded up so that the totals 
carried o,ver were reduced to 1,215,604 E U A  in 1981 and 4,690,047 E C U  
in 1982.'
Payments
16. A s regards appropriations for payment, the most typical feature of
1)  Mwhich since 1974 has been 'b  persistently low rate of u tilis a tio n  , 
the situation has now  improved and no appropriations were carried 
forward at the end of the 1982 financial year. ....
1) Annual report of the Court of Auditors for the 1979 financial year, 
p. 127, paragraph 8.7
./?

-  7 -
17. W here the payment rates per project series 1 s concerned, Table 3  sets 
out the situation as at 3 1  December 1982. It w ill be noted that, 
for the eight series of projects financed, 68.5 m illion E C U  of the 
235.2 m illion contracted by the end of 1982 s t i l l  have to be paid 
to the beneficiaries. This m eans that between 9  June 1975, the 
date when the fir s t support contract w as signed, to December 1982, 
the last date covered by this report, 70.9% of'Community support 
committed under contract w as paid out to recipients.
Repayment of support
18. A rticle A  of Regulation N o^ 3056773 states that Community subsidies 
are repayable under certain conditions. W h e n  the results of a  pro­
ject begin to be commerciaily exptoifedj the Commission sets a  time­
table for the repayment of capital and interest. Repayments are 
entered as revenue in the Community budget.
19. O n  3 1  December 1982 , 125 ol the 281 Council approved projects had 
been completed with the following results:
- 4 1  projects have become
total or partial commercial successes and should result in the 
repayment of 24.5 m illion EC U /
- in the case of 79 projects,
the technical work has been completed as set out in 
the programmes and the companies responsible for the projects are 
working on^he commercial application of the results. S o m e  of 
these projects w ill give rise to repayments;
- 5  projects which received a  tota l subsidy of 7-Om illion E C U  have 
suffered technical setbacks and, in accordance with the provisions 
of Regulation 3056/73, there would be no repayments.
t
20. A s it sometimes takes quite a  long time before the results can be 
exploited commercially, the real subsidy’ repayment rate can only
.../8

-  8 -
be assessed once a  fairly long period of time has elapsed. Table 4  
of the A n n ex  sets out the repayments position for the first four 
series of projects:
i) first series (1975): 15.9 million E C U , i.e.45.4Xof the subsidy
1)of 35.1 million E C U  originally paid out, has been repaid;
ii) second series (1976): 4.0 million E C U , i  .e.16.7% of theoriginal 
23.9 million E C U , has been repaid;
iii) third series (1977): 3.8 million E C U , i.e.1l.9%of the original 
32.0 million E C U , has been repaid;
iv) fourth series (1978): 0.7 million E C U , i.e.2.2%of the original 
N r 30.2 million E C U , has been repaid. -
F o r the four series of projects taken as a  whole, therefore, the average 
subsidy recovery rate is 20.2% , while the rate of technical setbacks is 
n o  m ore than 5.8% . ;
A s  interest on the subsidies is. payable fro n ) the time a  project is 
commercially exploited, the total due_in interest o n  the four series 
of projects taken as a  w hole is already 8.6 million E C U .
21. O f  the 24.5 million E C U  that companies have agreed to repay,11.3 million 
have already been transferred to the Com mission. T h e  balance will follow 
■in accordance with a  schedule of repayments.
1)A b o u t half of this repaym ent is d u e to tw o  very large projects.
.. ./9

- 9 -
VI. C O N C L U S IO N S
22. W hat is emerging from nine years of applying the hydrocarbons technology 
' programme is positive. The techniques w e  need to improve our chances -
of recovering new  resources have been improved, and exploration for and 
production of oil and natural gas in the Community have been speeded up.
23. The Commission feels that the time is n o w  opportune to carry out an
“  evaluation of the programme as a whole as well as the results obtained 
to date. T o this end a group of independent experts has been engaged 
to carry out an -valuation of the programme with particular reference to 
the cost/benefit effect on the M em ber States. The report of the group 
w ill  be available towards the end of 1983.
24. The Commission has also -decided to proceed .with tthe organisation of a  
symposium to be held in Luxembourg in 1984. This event w ill  act as
a  forum for the dissemination of results and w ill  permit the Commission 
to assess new  orientations for the programme.

-ProspectsngtDrillingProduction 
T  echniquesEnhanced
RecoveryT  ransport Storage
First series (1975) 
Subsidy granted (in U.A.) 
Number of projects432 000 
1
(1)9  380 000 
(2)13 790 360 
(6)1  883 673 
(2)1 1  945 926 
(4)1  482 000 
(1)
.Second series (1976) 
Subsidy granted (in U.A.) 
Number of projects3  287 933 
(3)1  483 200 
(1)20 913 6 5 1  
(18)7  358 1 0 1  
-  <5)1
1
,  1  353 500 ’  
(3) (-)
Third series (1977) 
Subsidy granted (in U.A./ 
Num ber of projects605 344 
(4)2  160 528 
(1)29 376 876 
(19)l
3  399j 1 0 1  
(3).5  663 303 
(4)290 246 
(1)
Fourth series (1978) 
Subsidy granted (in E U A )  
Number of projects1  055 450 
(5)4  2 8 1  599 
(4)1 9  517 390 
(21)4  881 513 
»(5)5  0 9 1  1 5 9  
(5)1  864 769 
(3)
Fifth  series (1979) 
Subsidy granted (in E U A )  
Number of projects354 059 
(2) (-)t
1 0  996 650 
(10)2  082 395 
(2)9 323 705 
■  (8)158 875 
(1)
Sixth  series (1980) ;  
Subsidy granted (in E U A )  
Num ber of projects1  732 299 
(4) (-)1 6  434 1 6 2  
(21)6  3 3 1  584 
(5)1  749 120 
(5)1  849 999 
(1)
Seventh series (1981) 
Subsidy granted (in E C U )  
Num ber of projects3 0 1  046 
"  - (1)4 4 5  895 
(1)9  707 578 
(13)1 1  441 194 
(12)1  114 1 6 1
(6) (-)
E ighth  series (1982) 
Subsidy granted(in E C U )  
N um ber of Droiects9 5  498
_ _ _ _ _ _ _ _ U l_  _ _ _ _ _ _ _ _ _ ( . - )____1 4
 169 256 
(2117  311 148
_ .  . .  (9)4  285 028 
C D2  773 804
C DTA3UE 1
B R E  ^ D O V W  O f  P R O J E C T S  B X  S t  CT OR ; ; •  j ', x

table 2
C O M M IT M E N T S  POSITION A T  31 DECEMBER 1 9 8 2 ANNEX I
Y e a  r A P P R O P R IA T IO N S  A V A I L A B L E A P P R O P R IA T IO N S  C O M M I T T E D
1974
1975Annual credits 2 5  000 000 u.a.
A nnual credits  2 5  000 000 u.a. 
>
Total 50 000 000 u.a.committed at 3 1  D ecem ber 1975 =  2 5  000 000 u.a. 
committed at 3 1  Decem ber 1975 =  1 3 914 816 u.a. 
remainder =  1 1  085 184 u.a.
50 000 000 u.a.
1976 Remainder from 1975 1 1  085 184 u.a. 
Annual credits 28  000 000 u.a.i
!
Total 3 9  035 184 u.s.committed at 3 1  Decem ber 1976 =  1 0  5 4 1  540 u.a.
committed at 3 1  Decem ber 1976 =  2 4 574 725 u.a.
remainder =  3  425 275 u.a.
remainder from  1975 not used 543 644 u.a. 
because projects withdrawn
3 9  085 184 u.a.
1977 Remainder from  1 9 7 6  (  3  425 275 u.a 
Annual credits 50 000 000 u.a.
Total 53 425 275 u.a.com m itted at 3 1  D e cem b er  1977 =  3 425 275 u.a. 
committed at 3 1  Decem ber 1977 =  1 9  048 886 u.a. 
rem ainder = 30 951 114 u.a.
53 425 275 u.a.
1978
O  ;
\ t ' y —Remainder from 1977 2 7 959 378 E U A  
Annual credits 3 5  000 000 E U A
Total ! _  6 2  959 378 E U Acommitted at 3 1  Decem ber 1978 =  27 959 378 E U A  
committed at 3 1  Decem ber 1978 =  8  84-f 918 E U A  
remainder . . . . . =  26 152 082 E U A
=  6
2 959 378 E U A
*) This is equivalent to 3 0  951 114 u .a.  in non-differentia ted appropriations.

T ASt-C S C cont *  C J ?A N N E X  1
Y ea r A P P R O P R IA T IO N S  A V A IL A B L E A P P R O P R IA T IO N S  C O M M I T T E D
1979f
Rem ainder from  1978 26 291 642 E U A  
annual credits 15 q q o o o o E U A
reassessment of commit- 950 000 E U A
ments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
To
tal 1 42 241 642 E U Acommitted at 3 1  December 1979 =  26 291 642 E U A  
committed at 3 1  December 1979 =  6 446 480 E U A  
remainder j  r-  ■  r  '  =  9 503 520 E U A
42 241 642 E U A
1980 Remainder from 1979 9 503 520 E U A
annual credits 20 000 000 E U A
reassessment of commit- 220 000 E U A  
ments ;
Total '  29 723 520 E U Atcommitted at 3 1  December 1980 =  9 503 520 E U A  
committed at 3 1  December 1980 =  1 8  180 979 E . U A  
reassessment of commitments =  823 417 E U A  
remainder 1  215 604 E U A
29 723 520 E U A
1981 Remainder from 1980 1  215 604 E C U
annual credits 23 000 000 E C U
transfer 4  000 000 E C U
reassessment  of commit- 937 890 E C U  
ments
Total 29 153 494 E C Ucommitted at 3 1  'December 1981 =  1  187 965 E C U  
committed at 3 1  December 1981 =  23 293 141 E C U  
writing-down of commitments - 17 65? E C U  
remainder 4  690 047 E C U  >
■  29 1 ,5 3  494 E C U
1982 Remainder from 1981 4  690 047 E C U
annual credits. 23 000 000 E C U
reassessment of commit- ;  
ments +
released through annulment 2  354 551 E C U  
transfer 8 000 000 E C U  
Total 38 044 598 E C Ucommitted at 3 1  December 1982 =  4  690 047 E C U  
committed at 3 1  December 1982 =  18 685 523 E C U
remainder 1 4  669 028 E C U
38 044 598 E C U

T A B L E  3ANNEX I
PA Y M E N T S SITUATION A T  31 D E C E M B E R  1982
\-y -' . -/
7
VPA Y M E N T S
Total
Commi tm entsRemainder
Project 1975 1976 1977 1978 1979 1980 1981 1982 due
series in  E U A u .a . u .a .1u.a. E U A E U A E U A E C U E C U E C U
1 s t s e r ie s 36 577 152 25 466 715 5 156 310 477 847 3 703 647 2 123- 267 787 - -
2nd s e r ie s 31 466 349- 9 444 637 5 596 653 2 914 136 2 135 189 2 699 3 6 i 144 836 56 565 87 6 629
3rd series 37 740 187- - 5 307 287 5 508 855 7 193 187 5 384 933 2 070 531 9 6 529 730
4 th  s e r ie s 31 565 372 - - - 4 144 897 5 810 593 4 302 213 5 931 679 3 213 219 6 767 694
5 th  s e r ie s 22 528 739 - - -- 2 408 023 4 711 383 1  948 637 1  894 428 8 643 365
6 th  s e r ie s 29 285 129 - - -- - 5 443 023 6 128 249 2 510 721 12 289 122
7th  s e r ie s 23 293 141 - - - - 1  * ”i .- 4 762 431 5 250 094 12 879 461
8 th  s e r ie s 22 722 759 - - - -i
1
i— 2 199 210 20 523 549
TOTAL 235 178 828 25 466 715 14 600 947 11 381 787 16 271 535 17 549 115 22 540 913 21 254 150 15 124 246 68 509 550

TABLE A
SU3SIDY  R E p A Y r-'E N T S  - SITUATION A T  3 1  D E C E M B E R  1982
(in ECU)
ProjectsS u m s paid to 
beneficiariesSubsi dy_  d) Repayment
settledInterests on 
recoverable 
subsidyTota l
repayments
(4+6)Recovery
rate
(4:1)’a)non-recover-
ablerecoverable b) 
under certain 
condi t ionsFully c) 
recoverable
1 2 3i4 5 6 7 8
1st series 
(1975)35 074 429 -19.149.501 1 5  930 810 7  026 246 6 362 909 22 293 719 45.4%
2nd series 
(1976)i23 868 006 64 005 19.819.873 3 984 128 1  664 102 1  370 225 5  354 353 16.7%
3rd series 
(1977)3 1  994 532 4  098 242 24.081.027 3 815 263 2  585 660 408 461 4  223 724 11-9%
4th series 
(1978)30 170 295 2  815 983 26.676.542677 770 60 566------------ j----------- -
50
1 821 1  179 591 ■■2 .2 %
T O T A L1 2 1  107 262 6 978 230 89.720.943 2 4  408 0891 1  336 5 7 4 8 6 4  3  416 33 051 505 20.2%
a)
b)
c)
d)A m ount of subsidy accounted for by technical setbacks
A m ount of subsidy accounted for by projects which were a  total or partial technical success ard which are not yet 
commercially exploitable
A m ount of subsidy accounted for by projects which are a  commercial success for which a  timetable forhas been settled with the beneficiaries repayments
Part of the recoverable support paid to the Commission at 3 1  December 1983, in accordance with the timetablefor repayments

A N N E X  II
Technical Results of the Projects
1. 1976 - 1st R o u n d  Projects
T h e  m ost significant results w ere obtained in the areas of pipelaying/in 
deep sea drilling and in deep water production techniques.
T h e  pipelaying tests in the Straits of M essina and the Sicily Channel 
carried out b y  S N A M  w ere directly responsible for proving the viability 
of deep water pipelaying in the Mediterranean and have led to the con­
struction ofjthe gas line from  Algeria to Italy w hich will carry 
1 2  billion m  of natural gas per year.
In deep sea drilling, several n e w  pieces of equipment/ especially the 
drilling equipm ent of the drillship "Petrel", w ere developed b y  G E R T H  
(G roupem ent europeen d e  Recherches technologiques sur les Hydrocarbures). 
This development included m ajor advances in deep-sea blow  out preventer 
controls, re-entry sonar and various drilling tools. This project has 
led directly to the ability of C om m unity companies to drill in u p  to 
1,500 m  water depths. ,  ,
In deep sea production, studies w ere carried out b y  G E R T H , w hich led to 
the construction of the G R O N D I N  underwater test station. This w a s the 
first test m a d e  o n  a  live field of a  totally underwater production system 
designed for deep water.
2. 1976 - 2nd R o u n d  Projects
In deep sea drilling support w a s given to develop several novel aspects of 
'the dynamically positioned drill ship "Pelerin" ( G E R T H )  and "B en O cean  
Lancer" ( B E N  O O E C O ) . T h e  development of these tw o  vessels added considerably 
to the ability of C om m unity companies to drill for hydrocarbons in a  deep 
water hostile environment.
T h e  second round of projects m arked the beginning of interest in novel 
production systems. A s  a  result of w o rk  done in this round, one C om m unity 
contractor, V I C K E R S  O F F S H O R E , has been involved in the design of the world's 
first tethered buoyant platform for the H U T T O N  field in the North Sea.
Also, another C om m unity com pany, B R IT IS H  P E T R O L E U M , is developing a  deep 
SM rt-er  gas production system.
Excellent results w ere obtained in the area of natural gas technology and 
C om m unity support has succeeded in putting P R E U S S A G  and S A L Z G I T T E R  in the .  
forefront of L N G  developments offshore.
This round also m arked the emergence of enhanced recovery technology, and 
a-very successful pilot project w a s carried out b y  G E R T H  o n  the C H A T E A U R E N A R D  
reservoir. If the results of this project prove applicable o n  a  w ide scale, 
the recoverable reserves of the C om m unity will be substantially increased; 
estimates of the increase range from  1 0  to 50 mi-llion r n  of oil.
.  ./16.

16.
3. 1 9 7 7  - 3rd R o u n d  Projects
In production technology, a  major project carried out by G E R T H  has led to 
the development and testing of components for a  deep water production 
■  system. Every aspect of the system has been brought to a  stage w here a  
suitable field is n o w  being sought o n  w hich to confirm the results of 
com ponent tests. A  valuable offshoot of this program m e has been the 
further development of the J-curve pipelaying method, w hich is of m ajor 
importance.
P R E U S S A G  continued to develop their experience in gas technology b y  carrying 
out a  comprehensive examination of offshore liquefaction of natural gas; 
a  novel aspect of this program m e is the development of an  offshore L N G  
loading arm . This project will have m a n y  applications in North S ea 
marginal field development.
Three enhanced recovery program m es w ere successfully completed b y  A G IP , 
B R IT IS H  P E T R O L E U M  and G E R T H . These program m es not only give European oil 
companies hands o n  experience of this very important technology but should, 
in the m e d iu m  term (5  years), lead t^ a n  increase in recoverable reserves. 
Estimated range from  20-100 million m J of oil.
A  novel p i peli n e compression station w a s  successfully developed by B O R S IG ; 
this system has been installed o n  a  test basis o n  a  pipeline and is 
proving very successful.
4. 1978- 4th R o u n d  Projects
Drilling:  as reported in 1982, the horizontal drilling technique developed 
b y  G E R T H  has been tested in the heavy oil field of R 0 S P 0  M A R E  in Italy.
This project constitutes a  world pinnacle in this technology.
Production technology:  the insert wellhead developed by S H E L L  I N T E R N A T I O N A L  
P E T R O L E U M  has been fully tested and reported. This technology should find 
w ide application in the offshore industry. S A L Z G I T T E R  successfully 
developed a  production system for L N G  and associated gas aim ed at North S ea 
conditions'; a  vital element of this system, i.e. the L N G  loading arm , is 
presently under test at full scale. G E R T H  projects developed to a n  
advanced stage deep water production equipment and articulated columns. 
TheBRITISH G A S  fluidised bed reactor is attracting considerable attention.-  
r~
Enhanced recovery:  G E R T H  carried out successful•laboratory studies o n  
solvents for use in tertiary oil recovery. S Y M I N E X  have examined in a  
feasibility study the effect of impressed electric current o n  oil production; 
this project is n o w  entering a  field test stage.
In pipeline technology, G E R T H  successfully carried out a  test o n  their 
underwater pipeline repair system W E L D A P . C O F L E X IP  have successfully 
developed a  cryogenic flexible pipeline w hich is presently being marketed.
... / 1 7.

5. 1979 - 5th R ound Projects
In production technology, W I M P Y  have developed a  system of composite nodes 
for offshore jackets w hich considerably reduces weight; this technology 
should b e exploited shortly. C . 6.D O R I S  have developed a  gravity tower 
for oil production under North Sea conditions and are presently working 
with S H E L L  to develop applications suitable for exploiting the G olden Block 
31/2 in the N orw egian sector of the North Sea.
In enhanced recovery/ A G I P  is examining m ethods of producing the 
P IN T E -D IR IL L O  field in Italy; this project is proceeding satisfactorily 
and should lead to a  positive result in the near future.
In pipeline technology, G E R T H  have demonstrated the physical feasibility 
of the J-curve pipelaying m ethod employing welding by electron beam ; this 
pipelaying m ethod will b e necessary for deep water applications.
In storage technology, S I N G L E  B U O Y  M O R R I N G S  demonstrated the feasibility o f 
loading shuttle tankers in 300 m  water depths and are presently searching 
for applications for this technology.
6. 1980 - 6th R o u n d  Projects
In geophysi cs, four projects w ere supported and all have been successfully 
completed. These projects have led to a  greater understanding of the 
geophysical properties of the earth and their determination through 
'  sophisticated seismic techniques.
In production technology/ B R IT IS H  P E T R O L E U M  have developed a  tanker-based 
production system for exploiting small reservoirs; this system will b e  
implemented towards the middle of 1986 and will have a  large im pact o n  
Europe's recoverable reserves of hydrocarbons. S A L Z G I T T E R  are developing 
a  system of L N G  and L P G  production from  marginal North Sea reservoirs. 
T E C N O M A R E  are examining further concepts of their already successful steel 
gravity platform, aim ed at a  valid concept for 300 m  water depth.
In enhanced recovery, projects are under w a y  to exam ine steam injection, 
microemulsion injection and carbon dioxide flooding, while B R IT IS H  P E T R O L E U M  
,  are well advanced with their development of'a d o w n  hole steam generator.
In"pipeline technology, G E R T H  are carrying out a  trial to 
demonstrate at full scale the applicability of their J-curve pipelaying 
m ethod (see 1979 projects).
In storag e technology, D IS T R IG A S , in co-operation with G E 0 S T 0 C K , are carrying 
out a  field trial in the North of B E L G I U M  to establish the technology of 
cryogenic storage of L P G  and L N G  in clay. This project has been successful 
thus far and has strategic implications for European storage of these 
hydrocarbons.