CELEX: 51976PC0088
Language: en
Date: 1976-03-11
Title: modification of the "Proposal for a Council decision on the granting of measures of support for Community projects in the hydrocarbons field " (presented to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 88
Vol. 1976/0034
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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 ---pagebreak--- COMMISSION O? TK3 EUItOBMN OOMMUM
                                                          COM(76)88 final.
                                                          Brussel , 11 I larch 1976
                                    modification of the
                " Proposal for a Council decision on the granting of measures
                of support for Community projects in the hydrocarbons field: "
                       ( presented to the Council "by the Commission)
COIl(76 ) 88 final .
 ---pagebreak---                                     MOTIVATION
1 . The Commission sent to the Council on 3 September 1 9T5 » a proposal for
      a decision for the granting of financial support of 44 683 758 u. a. for
      the completion of 38 technological development projects in the
      hydrocarbons sector during the years 1975-77 ( Doc COM(75)424 final ).
2 . The amount of support proposed was covered by the credits requested by
      the Commission ( 40 million u.a„ for 1976 ).
3 . Following the Parliament 's action of allocating to the . 1976 budget , for
      the support of Community projects , 28 million u.a. instead of the         –
      40 million u.a. anticipated by the Commission , the Commission's proposal
      for support exceeds the total funds available for 1975 and 1976 by about
      6 million u.a.
4 .- In order to keep within the budgetary limits , the Commission has made a
      further examination of the requests for support and on the basis of the
      consequent results , has arrived at a reduction of 6 235 123 u.a. on the
      amount initially proposed.
5 . This reduction was obtained by the stricter application of the criteria
      of examination of the projects , which has resulted in :
    - a) the exclusion of the following projects :
          07 » 04 CJ3 OFFSHORE LTD. " Corrosion control of offshore structures "
          08.01   DDG HAfTSA        "Mobile diving system with dynamic positioning"
          14.03   TRAMCO     -      "Underwater storage and associated structures "
      b ) the reduction by 5$ of the support initially proposed for the
          following projects :
          01.02   GEHIH             " Study of problems related to seismic study
                                      at tiea"
          01.03   AGIP/CGG          "Research into methodologies and geophysical
                                     techniques related to complex geological
                                      situations "
          07*03   TECN0MAK3         "Design and construction of a submarine
                                     vehicle for work and inspection operations
                                      ( Telesub )"
          13.04   ALSTHOM           "Development of autonomous energy sources
                                     under water"
                                                                       •/.
 ---pagebreak--- Furthermore , the Commission intends to propose the granting of support
in the next "budgetary exercise to the following projects which satisfy
the technical conditions of Regulation 3056/73 :
a) 02.02 BP Trading Co .: "Design and construction of a dynamically
    positioned drillship,f r on condition that the problems , in particular,
    of relationship between the responsible compaay and their sub­
    contractors be resolved according to the dispositions of the
    Regulation and the model contract ,
b ) 03.25 BLOHM & VOSS AG : "Tension leg platform" ( see point 13 of the
    motivation for the initial proposal ).
c ) 04« 15 GERTH : "Production project 100-200 ®" ( see point 13 of the     <
    motivation for the initial proposal ).
d) 04.10 BERTIN: "Centrifugal separation of crude oil water"* restricted
    to those elements which have a technological innovation aspect .
e ) 09.01 TECHOMAEE : "Trials and improvement of the performance of the
    remote controlled submarine vehicle TM102", restricted to those
    elements which have a technological innovation aspect ..
Following the above points , the result is that in the proposal for a
Council decision on the granting of measures of support to Community
projects for the period 1 975–7T » "the amount of support must be reduced
from 44 683 758 u. a. to 38 448 635 u. a.    This amount is covered by
credits in the budget for the 1976 exercise and the balance of the
credits ( 11 085 1 84 u.a. ) from the 1975 budget which is the subject of
a request for non-automatic carrying forward to be presented shortly to
the Council ( see financial sheet attached).
 ---pagebreak--- The Commission is therefore requested:
- to approve the modifications to the measures of support proposed
  by the Commission to the projects mentioned in the attached
  document ,
- to send these modifications to the Council ,
 ---pagebreak---           MODIFICATIONS TO TH9 COMMISSION'S PROPOSALS FOR SUPPORT SHOWN IN DOCUMENT COM ( 75 ) 424 FINAL
                                                                                                                  ( in u.a. )
                                                              1
                                                    u
                                                      Investments         Amount of support New proposal 1 or support    Difference in
                        PROJECTS                      fore se en durinj.£ initially propose                              relation to the
                                                      the period          by the Commission            Corresponding     initial proposal
                                                                                              Φ          araount
                                                      1975-1977                               Ρ
01-02 GER3.ii
      'Ttudy of problems related, to seismic
        study at sea"                                   3 888 950             1 155 580      35        1 36 I 133               194 447
01-03 AGIP/CGG
  '   " Research" into methodologies and geopbysica
        techniques related to complex geological
        situations "                                    5 280 000             2 112 000      35        1 348 000                264 000
02-02 3P TRADING CO
      "Tesign and construction of a dynamically
        positioned drillship"                       j   9 035 000             3 614 000            postponed under            3 614 000
                                                                                                   conditions shown
                                                                                                   at point 6(c ) in
                                                                                                   the motivation
03-25 BL0HM & VCSS
      "Tension leg platform"                                95 082         Postponed m             postponed until
                                                                            ■ ( 1976)              next budgetary
                                                                                                   exerci se
04-10 BtijitflN                                            513 136                                 postponed under
      "Cenbrifu^ al separation of crude oil                                                        conditions shotm
        vrater "                                                                                   at point 6(c ) in
                                                                                                   the motivation
04-15 G3PTH
      " Prodacticn project 100-200 m"                  27 500 000          Postponed m             postponed until
                                                                                1976               next budgetary
                                                                                                   exerci se
 ---pagebreak--- 1   1 ■ ■■             – ■■■!!. ..1*1.1 Ι· ■ ■– ■ – -Ι– , -■ -
                                                                     1             2       :    3            - 4          __        5     •_
                                                                                           I
   07-03 ?ECF0M\HÏÏ
1 ...      "iKisien and construction of a submarine                          V
,            vel icle for work and inspection                \
J            operations (Telesub )"                               7 907 276    2 767 547        30         2 372 183             395 364   ,
   07-04 CjJ OFFSHORE LTD.
           " Corrosion control of offshore structures "           1 920 000 |    576 000               Hot retained              576 000   I
   08-01 DDG HAÎTSA
j          "Mobile diving system with dynamic
                                                                                                     I
                                                                                                    !
j           positioning"                                          1 564 208      469 262               Wot retained             469 262    '
1 09-01 T33CHOMAHE                                               10 542 702                            Postponed under
 I         "Trxals and improvement of the performance                                                  conditions shown
 I          cf the remote controlled submarine                                            i
                                                                                          1            at point 6(c )
 I          vehicle TM102 "
                                                                                                       in the motivation
 1 13-04 /LTHOM
 I         Development of autonomous energy sources
j "        under water"                                           2 441 000      854 350      '30            732 300            122 050
   14-03 TRAMCO
 j         "Underwater storage and associated
            structures "                                          2 000 000      600 000               Not retained             600 000
    Total difference in relation to the initial                                             i
 J proposal                                                    !                         I:
                                                                                            I
                                                                                                   ι                  –_J    6 ;> Vî 1 ?}    I
 ---pagebreak---                                FIÎTAffCIAL MEÏ'DRANDUM
1 . Financial part coricerned:    Artide 322 ( 2220 ) 1
2 . Title of the budget ary part ;    " Community technological development
    projects in the hydrocarbons sector".
3* Legal basis :    Council Regulation (EEC ) Ho 3056/73 of 9 November 1973 ,
    (OJ No L 312 of 13 November 1973 );     Council decision on the Commission
    proposal of
4 . Programme description/Personnel concerned
4.0.0 .    Description :   Allocation of financial support to companies or
           research groups in the hydrocarbons sector.
4.0.1.0 .  Personnel concerned :     Community companies .
4.0.1.1 .  Fumber :  26 .
4.0.1.2 .  Geographical location :     Community territory.
4.1 .      Programme objectives
4.1.0 .    General objectives :    Establishment of a common energy policy :
                                   realisation of conditions which permit long
                                   term security of hydrocarbons supplies for
                                   the Community.     Council decision of 22 May
                                   1973j   Council Regulation (EEC ) No 3056/73
                                   of 9 November 1 97 3 ; " Council resolutions of
                                   14 September 1974 , 17 December 1974 and
                                   14 February 1975-          ••
           Specific objectives : Encouragement of technological development
                                   activities directly connected with
                                   exploration , exploitation , storage and
                                   transport of hydrocarbons which tend by their
                                   nature to decrease the degree of the
                                   Communities * external dependence in the
                                   supply of hydrocarbons .
                                                                          « !o
 ---pagebreak---                                                         -2-
 4.2 .       Justification of the pro .Trai.ime chosen 'to attain the objectives
             Bec;a\;?e of the technical , risks and the financial expense inherent
             in the, implementation of the technological development projects ,
             their execution would not be able to Hie assured or might 'be ';
             do ! zye-l without the intervention of Community financial support ,
            with considerable disadvantage for the security of hydrocarbons *
             supplies .          No other means .of Community intervention could produce
            the r ane results .
                                                                         »• .
5.           Credr'ts
5.0 .       Mr.2 -v.;. annual requirements
                                                                    Requirements m m.u.. a.
                                                 !    1         1975  ! 1976       1977   LiiÏLJ
               Régulation m force                            + 25 :     . ..28   ... 50   L*J
5.0.1 . gEt:i..T :r,e o f payment requi rements shown as* corresponding' to the
        . ConL-ya . t-Af..l engagements tacen by the Commission* - 1 - , - •
           i                   •    -     .      s|      '1 ' I 1975    1976   : 1977   | 1?78 I Total
              - Firbt group of
                   pro^cts approved by                          25.4    13-5                      38.9
                   tb'> Council on 17
             . ; . Pe?.t;;i.ber • 1974-..
                                            . «■  i
              - Sersond group . of
                   projects which are                                                             38.5
                                                                        25        13.5
                   th v- subject of the
                   prof-:fi.:it proposal
                                                   L
              - Third group of
                   projects to be                  ! _                              (*) I (*>       *
                   pro;. o:Jed during              I
                                                   »                                    I
                   <y • ••                         \
                                                    î
5• 1 •     2J IjJ; «c •-• i.o'i during the exe -r          ;; in preparation
           Th :i
           Th                 nation of credits i .; 1976 depends upon the intervention of
           th -. C ju:x •il decision for the new projects and the state of progress
           th-
           of the work on the projects approved in 1974 and 1 975 «
           of
  •                                                                                            •/.
(*) These figures will only be available after a new Commission proposal
       following an invitation to submit projects in 1976 .
 ---pagebreak--- €
  5.2 .   Method of calculating foreseen credits
  5.2.0 . Method of calculation :  Depends upon the contracted amount
                                   approved by the Council which fixes a
                                   ceiling for the support to be allocated
                                   to the projects retained.
  6.      Method of control envisaged
  6.0 .   No control is foreseen by the member countries . ... The computer
          service and financial control will make periodic on-site controls
          and follow the implementation of the projects by technical and
          financial reports which the companies are bound to submit
          periodically .                                                    .
  6.1 .   The Commission is bound to present to the Council annually a
          report on the state of progress of the work on each project and the
          costs committeed to their execution ;  the Commission must also
          annually inform the Council and the Assembly on the application of
          Regulation 3056/73.                          .
  6.2 .   No re-examination of the programme is foreseen by Regulation 3056/73 .
  7.      Total costs of the programme during the whole period envisaged
          The support of technological development projects in the
          hydrocarbons sector is a three-yearly programme renewable each year.
          It concerns a permanent programme , the costs of which , for an
          average year, will be apportioned approximately 35c/<> "to "the Commission
          and 65$ to the companies responsible for the projects .
  8.      Necessary personnel and credits
  8,0 .   Personnel necessary exclusively for the execution of the programme
          a) Direction of requests for support and negotiation of contracts :
             5 external consultants ( three technicians plus two accountants ),
             1 grade A official in charge , 3 technicians ( grade A),
             1 legal counsellor ( grade A), 2 assistants ( grade B ),
             2 secretaries ( grade C ).
                                                                         •Λ
 ---pagebreak---                                      -4-
      b ) Management of contracts '' "*                  v       ».-;V
           1 grade A official in charge , . 1 engineer ("grade' A), * :•«
           1 legal counsellor ( grade A),' 1 accountant ( grade B ),
           1 assistant ( grade B ),         2 secretaries ( grade C ).
8.1 . Additionnai personnel
           -  >^«ΜΜηΜΜΜΜΜΜΡΡ
      5 . srtemal consultants , 3 grade A officials , of whom 1 is an
      ermine 3 r,
      3 officials ( grade B) (1 accountant , 2 assistants ), 2 secretaries
      ( grade C ).
8. 2.
9.    Programme financing ,                           .
9.0 . Financing, by credits inscribed in Chapter 32 of the budget .
9. 3. Credi ts to be inscribed in futura budgets
      50 ®      a. per year.