CELEX: 51982PC0366
Language: en
Date: 1982-06-15
Title: Proposal for a COUNCIL DECISION on the granting of support for Community projects in the hydrocarbons sector (1982) (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82) 366
Vol. 1982/0129
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(82)366 final
                                                      Brussels - 15 June 1982
                                      p &:                   i
                                      %                  , /y
                                  Proposal for a
                                 COUNCIL DECISION               -
            on the granting of support for Community projects in the
                            hydrocarbons sector ( 1982 )
                  ( submitted to the Council by the Commission )
 COM ( 82 ) 366 final
 ---pagebreak---                                             REASONS
                                                         Ce\n
                                                                                      4
1 . The Council of the European Communities adopted Regulation ( EEC ) No . 3056 / 73
     on the support of Community projects in the hydrocarbons sector on
     9 November 1973 . This support is intended to promote technological
     development directly related to those activities in prospection for .
                             »
     exploitation and storage or transport of hydrocarbons which are likely
     to increase the security of the Community 's energy supplies .
 2 . In application of this Regulation / and following a proposal by the
     Commission , the Council authorised support measures involving a
     sum of the order of 225 million ECU for the carrying out of 242 projects
     during the years 1974 to 1981 ^.
                                                                                 ./.
    0J No . L 312 / 1 of 13 November 1973 .
    - Council Decision of 19 December 1974 on the granting of support for
      . Communi ty proj ects in the hydrocarbons sector ( Doc . R / 3600 / 74 ).
    - Council Decision of 4 May 1976 on the granting of support for
        Community projects in the hydrocarbons sector ( Doc . R / 854 / 76 ).
    - Council Decision of 25 October 1977 on the granting of support for
        Community projects in the hydrocarbons sector ( Doc . R / 2416 / 77 ).
    - Council Decision of 30 October 1978 on the granting of support for
        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 No . L 281 of
        10 November 1979 )..
    - Council Decision of 27 October 1980 on the granting of support for
        Community projects in the . hydrocarbons sector ( Doc . No . 10142 / 80
         ENER 111 ).
    - Council Decision of 27 October 1981 on the granting of support for
        Community projects in the hydrocarbons sector ( Doc . No . 100024 / 81
        ENER 114 ).
 ---pagebreak---                                    - 2 -
3 . For the current financial year the Commission , in the Official Journal -
    No . C 251 of 1 October 1981  - published an invitation to all parties
    concerned to submit , by 30 November 1981 , applications for support that
    might qualify for consideration in the course of the 1982 budgetary year .
4 . In reply to this invitation the Commission received applications
    from 36 Community undertakings involving 52 technological development
    projects and estimated costs of some 176 million ECU during the
    period 1982 to 1984 .
5 . The Commission charged with processing applications for support
    gave the projects a preliminary examination to determine whether they
    were receivable under the terms of Regulation N° 3056 . The purpose
    of this examination was to establish whether :
    - the projects were relevant to technological development activities
       directly relating to the activities of prospection for , exploitation
       and storage or transport of hydrocarbons ;
    - the natural or legal person in charge of the project was duly
       constituted under the current laws of the relevant Member States
       of the Community .
6 . The Commission then sent the documentation on each project    to the
    Member States for the purpose of consultation and considered any
    observations or comments received .
7 . On the basis of these preliminaries , as well as information provided
    by the applicant companies , the Commission proceeded to assess each
    project and draft those measures which the Council would possibly
    be called upon to grant .
 ---pagebreak--- As each project has to meet one imperative condition , namely that
carrying it out would result in greater security of Community
supplies of hydrocarbons , the Commission , in application of the
provisions of Regulation No . 3056/ 73 , adopted the following
assessment  criteria  :
- degree of technical innovation in the project compared with
  the current state of the art ;
- technical feasibility of the project and probability of success ;
- the number o r range of possible applications of the results of
  the projects ;
- reliability of the project in relation to the health and
  environmental protection standards ;
- risk of duplicating other techniques already evolved or under
  development , and the possibility of cooperation between other
  similar projects ;
- the technical capacity and financial standing of the parties
  responsible for the project ; the possibility of an
  association between the latter and the potential partners in
  the oil industry .
In making its assessment the Commission particularly took into account
the question of certain objectives , which in the Commission 's opinion
have priority , being achieved by the project in question , e.g. :
- improving exploration techniques ;
- increase in the overall recovery rate from known deposits ;
  increasing the recovery rate by eliminating technical obstacles ;
 ---pagebreak---                                     - L -
     - improving the degree of technical reliability in relation to
       production from the fields ;
     - shortening the period required before a known deposit comes into
       production ;
     - the possibility of exploiting heavy and viscous crudes as well as
       reservoirs containing crude of low mobility .
10 . The Commission has moreover decided that no supporting measures should
     be considered in the case of projects which :
     - are simply preliminary studies or involve no technical risks ;
     - relate to the perfecting of equipment which , although representing
       technological progress , offers very limited prospects of use in
       the hydrocarbons sector ;
     - represent a stage in developing an existing technique but do not
       provide the type of solution which takes future needs into account .
11 . In some cases the Commission has also made large reductions in the
     investment sums proposed for Community support whenever the assessed
     cost appeared disproportionate to the stated aims or where part of
     the project did not appear to correspond with the intention of
     Regulation 3056 / 73 .
12 . Once the process was completed , 36 projects were regaroed as
     qualifying for Community support , the corresponding -investment
     amounting to 77.117.742 ECU for the three-year period 1982 / 1984 .
                                                                    ./.
 ---pagebreak---                                      - 5 -
13 . The Commission proposes intervention ranging from 30 to 40 % of these
     investments .
14 . In order to determine how much support to grant each project , the
     Commission took account of the provisions of Article 4 of
     Regulation 3056 / 73 referred to above , namely
     - Community support may constitute only a minority share of the
       financing of the project ;
     - the sum which may be granted to a project shall depend on expected
       results and the relevance of such projects to the Community .
     In the light of these provisions it decided to work on the following
     principles :
     - 40 % support rate will be given to projects , the exploitation of
       whose results would lead to an increase in the available quantities
       of , and / or speed up the process of making the best use of , the
       Community 's hydrocarbon resources ;
     - 35 % support rate will be given to projects dealing with secondary
       and enhanced, recovery ;
     - 30 % support rate will be given to projects in all other sectors .
15 . In application of these principles and taking into account the
     project assessment results , the total support that the Commission
     proposes should be granted during the year 1982 to the 36 selected
     projects amounts to 25.977.600 ECU .
16 . This support should be granted in the form of subsidies repayable in full
     in the event of the commercial exploitation of any results obtained .
 ---pagebreak---                                - 6 -
17 . The Commission will ensure that the advantages granted by the
     Community to the promotors of these projects do not alter the
     existing conditions of competition in the Community market in
     any way incompatible with the provisions of the Treaty as it
     applies to this field .
18 . Where two or more undertakings which receive Community support are
     pursuing similar objectives , the Commission will organise special
     meetings with a view to achieving an appropriate, degree of cooperation .
19 . The appropriations available under Art . 7000 of the 1982 budget for
     financing Community projects in the hydrocarbons sector amount
     to 22.4 million ECU as commitment appropriations . This amount has to be
     increased from commitment appropriations brought forward from 1981
     following the withdrawal of a certain number of projects adopted by
                          1
     the Council in 1981 . The amount of support being proposed by the
     Commission in the framework of the present budgetary exercise is
     consequently covered by the appropriations available .
                                     *
                            *               *
     The Council is asked to adopt the following decision :
     On April 30 , 1982 , this amount reached 4.583.223 ECU
 ---pagebreak---                    PROPOSAL FOR A COUNCIL DECISION .
                    on the granting of support for
             Community projects in the hydrocarbons sector
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No . 3056 / 73 of 9 November 1973
                                                                     1
on the support of Community projects in the hydrocarbons sector , and in
particular Article 6 ( 2 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas Regulation ( EEC ) No „ 3056 / 73 provides for the granting of
support for the carrying out of technological development projects
which are of fundamental importance in ensuring the Community 's supply
of hydrocarbons :
Whereas it is essential to proceed with the performance of projects which
are particularly likely to expedite the exploitation of resources and
improve storage and transport conditions for hydrocarbons in the
Community which could not be carried out or would have to be postponed
without Community support ,
HAS DECIDED AS FOLLOWS    :
                                                                 ./.
  0J No . L 312 , 13.11.1973 , p.1
 ---pagebreak---                              Article 1
For the period 1982 to 1984 , support shall be granted for the Community
projects shown in the Annex , in the form of subsidies , repayable if the
results are exploited commercially , up to an indicative amount of
25.977.600 ECU .
This figure is given merely by way of indication and may be adjusted
within the annual budgetary procedure .
The ECU is defined according to the Financi al . Regulation in force .
                            Art i c le 2
The support referred to in Article 1 shall be granted for each of the
projects on the basis of the percentages shown in the Annex of the
actual costs as verified and accepted by the Commission up to an
indicative amount also specified in the Annex .
                            Article 3
The Commission shall negotiate and conclude with the persons concerned
the contracts necessary for the implementation of this Decision .
The Commission shall administer such contracts .
Dpne at Brussels ,
                                                For the Council
                                                The President
 ---pagebreak---                                           %
               ANNEX    -  PROPOSED SUPPORT TO TECHNOLOGICAL DEVELOPMENT PROJECTS IN THE HYDROCARBON SECTOR ( 1982 )
         01 .    GEOPHYSICS AND PROJECTING
                                                                          Total                                                   Amount of
No .                       Project Title              Promotor         Investment         Appreciation and R~ate of support        support
                                                                       ( 1982-1984 )                                                 ECU
                                                                           ECU
01.29 / 82    Geoloc Radio positioning system        Sercel           1.606.832       Normal industrial development .                  -
                                                                                      No support .
01.30 /82     flew position fixing system for aid    Scienti fie         318.327      This project , if successful , will improve 95 498
              remote sensing of hydrocarbons         Survey &                         exploration in remote areas .
                                                     Location Ltd .                   To be supported:   30%
                                                            •
                                «
      •*
     *
 ---pagebreak---        03 . PRODUCTION SYSTEMS
                                                                       Total                                                       Amount of
 No .                  Project Title               Promoter        Investment           Appreciation and Rate of support             support
                                                                   ( 1982-1984 )                                                        ECU
                                                                         ECU
03.120 /82  Down hols pumping system develop-   NEI Peebles Ltd      2 070 10.4    This project , if successful , will solve          828 041
            ment
                                                                                   a current technological bottleneck .
                                                                                   To be supported :  40%
03.121 /82  Floating production system for deep AG IP SpA /          4 120 000     Follow-up of TLP project already completed       1 648 000
            Mediterranean waters                Tecnomare SpA                      Important project for Mediterranean deep
                                                                                   water works .   To be supported : 40 %
03.122 /82  Tripod tower platform               Heerema                 559 151    This project should establish the - tripod         223 660
                                                Engineering                        as a viable alternative to floating plat-
                                                Service BV                         forms in deep waters . To be supported:    40 /
03.123 / 82 Concrete platforms for Arctic       Mc Alpine £ Sons     1 202 567                                                        481 026
                                                                                   Extension of current European technology
            regions                             Ltd .                              to Arctic areas . To be supported :  40%
03.124 / 82 Development of a deep water barge   Taylor Woodrow       1 376 418     This project should lead to a more econo-           550 567
                                                înergy Ltd .                       mic deep water produ'etion system .
                                                                                   To be supported : 40%
03.125 /82  Study of an integrated production   * CB                    492 862    Normal industrial development . No support .           -
            riser for floating platforms
03.126 /82  Sea trials of SWOPS re-entry        BP Co . Ltd .         1 609 848    Offshore test of equipment developed in            663 . V 59
             equipment                                                             Phase 1 of this programme .
                                                                                   To be supported :   40%
                                                                 I              rt
 ---pagebreak---                                                                            J
                                                                                                                              -*3 .
      03 . PRODUCTION SYSTEMS ( Cont'd )
                                                                    Total                                                  Amount of
 No .                   Project Title             Promotor      Investment         Appreciation and Rate of support         support
                                                                ( 1982-1984 )                                                 ECU
                                                                     ECU
03.127 /8 2   Deep water gravity tower           C. 6 . Doris      1 135 814 * Follow-up to previous project which           454 325
                                                                               should , if successful , establish the gra-
                                                                               vity tower concept . To be supported : 40%
03.128 /82    Offshore trials of composite tubes GERTH / SNIAS     1 615 942 * Offshore test of development already          646 376
                                                                               undertaken . Should establish viability
                                                                               of composite tubes . To be supported : 40%
03.129 / 82   Deep water gas production -        BP Int . Ltd .    3 536 962   This project should lead to an integrated   1 414 784
              Subsea systems                                                   system for deep water gas production .
                                                                               Important project in relation to the
                                                                               North Sea . To be supported : 40%
03.130 /82    Design, manufacture and deployment Standard          6 785 484   Normal industrial vénture .   No support .       -   .
              of combined flexible flowliries    Telephones and
                                                 Cables Ltd .
03.131 /82    Design of a   floating production  B'!0C Ltd .         751 608 * The project , if successful , will lead to    300.643
              facility for use on marginal                                     the economic exploitation of already
              fields                                                           discovered marginal fields in the North
                                                                               Sea . To be supported :   40%
 ---pagebreak---           05 . SECONOARY AND ENHANCED RECOVERY .
                                                                       Total                                               Amount of
No .                     Project Title              Promotor       Investment        Appreciation and Rate of support       support
                                                                   < 1982-1984 )                                              ECU
                                                                        ECU
05.34 /82      Preliminary engineering study of    BN0C Ltd .       1 317 518    Important project in relation to the         461 131
               nitrogen injection in North Sea                                   North Sea .  To be supported : 35%
               reservoirs
05.35 /82      Injection of polymers into the      GERTH           6 286 015     Novel development has already been
               Châteaurenard     reservoir                                       supported .  No support .
05.36 /82      Horizontal drilling into the        Elf Italiana     2  046 440*  Novel method of enhanced recovery by         716 254
               heavy oil Rospo Mare field          SpA                           horizontal drilling . Project of long
                                                                                 term importance . To be supported: 35%
05.37 /82      Recovery of hydrocarbons from       Ammonia Casale     .835 181   This project may lead to the commercial      292 313
               bituminous rocks                                                  exploitation of poor quality shales .
                                                                                 To be supported:   35%
05.38 /82      Interaction of steam displacement . Technische         244 796    Interesting research proposal which could     85 678
               Steam distillation during oil       Ri jkshogeschod               lead to major development .
               recovery                            Delft                         To be supported: '35%
05.39 / 82     Testing of CO ., injection into the GERTH              646 377    Similar to , but no so representative ,
               Chai Uy -en - Biere                                               t.he Pecorade project .   No support .
 05.40 /82
               Proposal for a C0^ huf f-and-puf f  AG IP SpA        2  495 286 * First application of C0^ buff-and-puf f      873 35C
               field pilot in the Pisticci oil                                   technology in Europe .
               reservoir                                                         To be supported : 35%
 05.41 /82     Improvement in oil field product-   Sy m i ne χ         902 665   Pre-pilot phase of an interesting enhance    315 932
               ivity using electrical methods                                    enhanced recovery technique .
                                                                                 To be supported : 35%
 ---pagebreak---                                                                                                                            J.
                                                             1
           05 .  SECONDARY ANO ENHANCED RECOVERY
                                                                     Total                                                Amount of
 NO .                 Project Title                Promotor       Investment          Appreciation and Rate of support     support
                                                                  ( 1982-1984 )                                              ECU
                                                                      ECU
05.42 /82  Testing of steam injection into      GERTH / AGIP     5 274 435 *    Major offshore test of enhanced recovery  1 846 052
           the Emeraude reservoir                *                              technology .   To be supported :  35%
05.43 /82  Testing of new technologies for      ASVAHL           5 978 986 *    The implementation of this project should 2 092 645
           pre-processing heavy oil on the                                      lead to the exploitation of heavy oil
           field                                                                reservoirs .   To be supported:  35%
05.44 /82  CO^ injection into the Pecorade      GERTH            1 793 695 *    Major European field trial of CO^ inject­   627 793
           reservoir                                                            ion .  To be supported :  35%
                                                               4
     •
        ·*
       *
                 •
 ---pagebreak---                                                                  «.   i               L
            06 . ENVIRONMENTAL INFLUENCE ON OFFSHORE EQUIPMENT
                                                                            Total                                                  Amount of
  No .                    Project Title                 Promotor        Investment           Appreciation and Rate of support       support
                                                                        ( 1982-1984 )                                                 ECU
                                                                             ECU
  06.16 /82     Arge Cryotrans ( Phase ID'            Salzgitter AG / 7 A08 547 *       Major offshore trial which should develop 2.222 . 964
•                                                     *
                                                                                        fully offshore liquefaction of natural
                                                                                        gas . To be supported :  30%
                                                    I
                '
                                                                                                                                              M
                                                                           *
                                                                                                                                               I
                                                                                                                                                t'J
          Ì
 ---pagebreak---              07 .  AUXILIARY SHIPS AND SUBMERSIBLES
                                                                   Total                                           Amount of
No .                   Project Title               P romo tor   Investment       Appreciation and Rate of support   support
                                                                ( 1982-1984 )                                         ECU
                                                                    ECU
07.45 /82    Project MARS .                       If Herion      1 445 392 *  To be resubmitted . in 1983 .            -
                                                                              No support .
07.46 /82    Development of a deep water          T.E. Assoc-      744 849 *  Interesting concept in submersible      223 455
             tethered manned submersible                                      development . To be supported :  30%
07.47 /82    Development of the mobile diving     Lawrence       6 720 288    Normal industrial development .          -
             unit                                 Allison Ltd .               No support .
 07.48 /82   TM-308 .  Vehicle for inspection     Tecnomare SpA  2 842 396*   Inspection vehicle aimed at deep        852 718
             and maintenance of marine struct-                                Mediterranean waters .
                                                                              To be supported :   30%
                                                                                       •
        '· «
     «"
     *
 ---pagebreak---                                                                                                                              5 - -rr
           10 .   TRANSPORT
                                                                 Total                                                     Amount of
NO .                     Project Title            Promotor    Investment          Appreciation and Rate of support           support
                                                              < 1982-1984 )                                                    ECU
                                                                  ECU
10.34 /82     Heavy oil transport process        Bertin & Cie 3 530 834       The concept involved in this project              -
              PETROSAC                                                        should be re-examined by the promoter .
                                                                            . No support .
10.35 / 82    Offshore loading of liquefied      GERTH        3 878 261 *     Important project which should establish      1 163 478
              gas                                                             offshore loading of LPG .
                                                                              To be supported :    30%
10.36 /82     Heat recovery from exhaust gas     SNAM SpA     6 074 043       Project outside Regulation .    No support .
10.37 /82     Prototype construction and testing Arge Supra   5 372 536*      The Supra project will solve many pro-        1 611 760
              of the UW-Work and pipeline repair                              blems in pipe repair in the deeper waters
               system                                                         of the North Sea .    To be supported : 30%
                                                                                                 ,                     ·
 ---pagebreak---              14 .   STORAGE
                                                                        Total                                               Amount of
  No .                      Project Title              Promo tor     Investment       Appreciation vid Rate of support       support
                                                                     ( 1982-1984 )                                             ECU
                                                                         ECU        t
  14.13 / 82      Construction techniques - in lime-   Cavern System   4 780 383   The project will complement work already 1 434 108
                  stones for cryogenic storage       , Ltd .                       under way on another project .
                                                                                   To be supported:   30%
. 14.14 / 82      Deep water storage / loading         E.M.H.          1 880 149   This project will be presented again        -
                  development programme                                            in 1983 . No  support .
  14.15 /82       Development of a new LPG storage     GERTH /         2 585 507*  A novel method of LPG storage which        775 652
                  technology                           TECHNIGAZ                   should reduce costs .      -
                                                                                   To be supported :  30%
                                                                                            •
       •*
       ψ
m
 ---pagebreak---                                                                                                                                        1?.
           15 .    MISCELLANEOUS
                                                                          Total                                                   Amount of .
NO .                       Project Title               Promotor       Investment        Appreciation and Rate of support           support
                                                                      ( 1982-1984 )                                                  ECU
                                                                           ECU
15.28 /82       Hyperbaric welding centre            Comex Hou l der     899 025    Investment project .   No support .              -
                                                    .Diving Ltd .
15.29 / 82      Remote controlled underwater         « entree Ltd .      289 543    Low technological risk area .    No support .    -
                cleaning device
15.30 /82       Deep sea power station , working on  Bertin S Cie        969 566    This project is complementary to work           290 869
                Rankine cycle with pressurized                                      already being carried out and should
                combustion   chamber                                                establish a better method of underwater
                                                                                    power provision .  To be supported:    30%
15.31 /82       Development of an independent        S. S. O.S.      12 148 085     Project withdrawn by the promoter .    Will
                method of underwater welding at                                     be represented at a later date .
               atmospheric pressure                                                 No support .
15.32 /82       Cast steel nodes for fixed off­      B. N.O.C.           618 968    Interesting area of research which could        185 490
               shore structures                                                     prove useful in future steel structure
                                                                                    design . To be supported :   30%
15.33 / 82     The"mechani cal echo " method of      Tecnomare SpA       810 125 *  First phase of a novel method for off­          243 037
                diagnostic for offshore structures                                  shore structural monitoring .
                                                                                    To be supported :  30%
15,34 / 82      Subsea oil loading system            AEG Telefunken   1 245 731     This project employs a novel technology         373 719
                                                                                    to remove a bottleneck .
                                                                                    To be supported :  30%
     *
 ---pagebreak---                                                                                    i.
                                                                                                                                    ia .
     15 .     MISCELLANEOUS
                                                                          Total                                                   Amount of
No .                         Project Title              Promotor     Investment            Appreciation and Rate of support        support
                                                                     < 1982-1984 )                                                    ECU
                                                                           ECU
 15.35 / 82      A field investigation into the       BP Co . Ltd .        760 447      Second phase on a programme already        228 134
                  soil structure interaction of a                                       under way .   To be supported :    30%
                  fondation system
 15.36 /82        Research project on catalysts for   Ammonia Casale    1 138 883       Project outside Regulation . No support .    -
                  the synthesis of synthetic fuels
 15.37 /82        Development of techniques for the   Taylor Woodrow   2 139 862        Important project with respect to ins­     641 958
                  inspection of offshore concrete     Ltd .                             pection of existing concrete structures .
                  plat forms                                                            To be supported :   30%
 15.38 /82        Application of electron beam weld-  ε . Τ . P.M.       . 678 696      First application of electron beam weld-   203 452
                  ing for laying underwater pipes                                       ing technology already developed for
                                                                                        " J " curve pipelaying .
                                                                                        To be supported :   30%
 15.39 /82        Polyphasic   flows in marine risers GERTH             2 288 174     ■ This project should complete study         686 452
                                                                                        already begun . The developments have
                                                                                        been most impressive .
                                                                                                                        A
 15 „ 40 /82      Thermal protection of tubings       GERTH                807 971      The envisaged development will have        242 391
          ' »
                                                                                        application in many enhanced recovery
                                                                                        projects .  To be supported :     30%
       •*
      ψ
                1
 ---pagebreak---                                                                             i.
                                                                                                                           9·
           15 . MISCELLANEOUS ( Cont 'd)
                                                                   Total                                               Amount of
NO .                   Project Title            Promotor        Investment         Appreciation and Rate of support      support
                                                                ( 1982-1984 )                                              ECU
                                                                    ECU
15.41 /82 Implosion strength of thin concrete McAlpine              901 925      Duplication of effort with existing
          elements                            Offshore Ltd .                    project .  No support .
15.42 /82 A high performance rope for deep    SEP Offshore          549 420     This project should be presented again   -
          water moorings                                                         in 1983 . No support .
                  TOTAL                                      127 939 899                                        •
                                                                                                                       25 977 600
          Exchanqe rate on 30 November 1981
          1 ECU :    DM 2.45193
                   Hfl 2.68264
                   UKb 0.565457
                    FF 6.18834                                                 •
                   Lit 1,317.08
                   IRb 0.690744
            *)
                Reduced amount
                                                 «
 ---pagebreak---                                FINANCIAL RECORD
Relevant budget heading code
Article 700 - Item 7000
Title of budget heading
" Community technological development projects in the hydrocarbons sector "
Legal basis
3.0 . Regulation ( EEC ) No . 3056 / 73 of the Council of 9 November 1973 ,
      on the support of Community projects in the hydrocarbons sector
       ( 0J No . 312 of 13 November 1973 ).
3.1 . Council Decision of 19 December 1974 , on the grant of measures of
      support for Community projects in the hydrocarbons sector
      ( Doc . R / 3600 / 74 ).
3.2 . Council Decision of 4 May 1976 , on the grant of measures of support
      for Community projects in the hydrocarbons sector ( Doc . R / 854 / 76 ) .
3.3 . Council Decision of 25 October 1977 , on the grant of measures of
      support for Council projects in the hydrocarbons sector ( Doc . R / 2416 / 77 )
3.4 . Council Decision of 30 October 1978 , on the grant of measures of support
      for Community projects in the hydrocarbons sector ( Doc . R / 2671 / 78 ).
3.5 . Council Decision of 29 October 1979 , on the granting of support for
      Community projects in the hydrocarbons sector ( 0J L 281 of
      10 November 1979 ) .
3.6 . Council Decision of 27 October 1980 , on the granting of support
      for Community projects in the hydrocarbons sector ( Doc . No .
      10142 / 80 ENER 111 )
3.7 . Council Decision of 27 October 1981 , on the granting of support
      for Community projects in the hydrocarbons sector ( Doc . No .
      10024 / 81   ENER 114 ).
3.8 . Commission proposal on the granting of support for Community
      projects in the hydrocarbons sector ( 1982-1984 )
 ---pagebreak--- 4 . Description of tbe measure
    Granting 36 Community undertakings financial aid for use on projects in
    the hydrocarbons sector .                               ,
5 . Objective
    To promote technological development directly related to the activities
    of prospection for, and exploitation, transport and storage of hydro­
    carbons likely to increase the security of the Community 's supplies in
    hydrocarbons .
6 . Justification of the proiect
    Because of the technical risks and the financial burden involved in
    carrying out the technical development projects,, they would not be
    carried out or would have to be postponed ( thus considerably
    prejudicing the security of hydrocarbons supplies) Unless the
    Community provided financial support .
7 „ Appropriations
    Financial situation on Aprii 3CL, 1982 i
    Appropriation for commitments                                  ( ECU)
    - 1982 budget                   '                            22.400,000
       appropriations brought forward f rem 1931           .      4,583.223
                                                                 26.983.223
    - commitments implemented                     '            ~     637.461
                                                                 26.345.762
    - 1982 proposal                                              25,977,600
    - relinquished amount                                            368,162
8 , Type of control to be applied
    8 0 1o There is to be no control by Member States , The authorising
           department and Financial Control will carry out regular on-the-spot
           checks on documents, and will follow the completion of the projects
           by means of the technical and financial reports which the undertakings
           are required to . send in regularly^
    8*2 , The Commission is to present an annual report to the Council en the
           state of progress of each project and the sums committed in carrying
           it out ; the Commission also has to submit an annual report to the
           Council and the European Parliament ©n the implementation of
           Regulation NO® 3056/73 *