Oil and Pipelines Act 1985

The Agency

1

• (1) There shall be a body corporate, to be called the Oil and Pipelines Agency (in this Act referred to as “the Agency”), for the purpose of exercising and performing the functions assigned to the Agency by this Act.

• (2) The Agency shall consist of—

• (a) a full-time or part-time chairman; and

• (b) such number of other full-time or part-time members, not being less than two or more than four, as the Secretary of State may from time to time determine.

• (3) The Agency shall not be regarded as a servant or (except where it is acting in pursuance of an agreement entered into under section 2(1)(a) below) as an agent of the Crown, or as enjoying any status, privilege or immunity of the Crown; and its property shall not be regarded as property of, or property held on behalf of, the Crown.

• (4) The Agency shall not be exempt from any tax, duty, rate, levy or other charge whatsoever, whether general or local.

• (5) Schedule 1 to this Act shall have effect with respect to the Agency.

General functions of Agency

2

• (1) The Agency shall have power—

• (a) to enter into agreements for the carrying out on behalf of the Crown of activities with respect to petroleum, pipelines and storage installations held by or on behalf of the Crown;

• (b) to enter into such participation agreements as the Secretary of State may determine;

• (c) to do anything required for the purpose of giving effect to agreements entered into under paragraph (a) or (b) above and to such participation agreements entered into by persons other than the Agency as the Secretary of State may determine; and

• (d) to buy, sell or otherwise deal in petroleum on its own account.

• (2) The consent of the Secretary of State shall be required—

• (a) for the exercise of any option or the making of any election which (in either case) entitles the Agency to take petroleum under a participation agreement; and

• (b) for any exercise of the power conferred by subsection (1)(d) above.

• (3) The Secretary of State, in giving a consent for the purposes of subsection (2) above, may impose such conditions as he thinks fit.

Transfer to Agency of property etc. of Corporation

3

• (1) On such day as the Secretary of State may by order made by statutory instrument appoint (in this Act referred to as “the transfer date”), all the property, rights and liabilities to which the British National Oil Corporation (in this Act referred to as “the Corporation”) was entitled or subject immediately before that date shall become by virtue of this section property, rights and liabilities of the Agency.

• (2) References in this Act to property, rights and liabilities of the Corporation are references to all such property, rights and liabilities, whether or not capable of being transferred or assigned by the Corporation.

• (3) It is hereby declared for the avoidance of doubt that—

• (a) any reference in this Act to property of the Corporation is a reference to property of the Corporation whether situated in the United Kingdom or elsewhere; and

• (b) any reference to rights or liabilities of the Corporation is a reference to rights to which the Corporation is entitled, or (as the case may be) liabilities to which the Corporation is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom.

• (4) The Corporation shall continue in existence after the transfer date until it is dissolved in accordance with subsection (5) below; and the period of its continued existence after the transfer date is in this Act referred to as “the transitional period”.

• (5) The Secretary of State may, after consulting the Corporation and the Agency, by order made by statutory instrument dissolve the Corporation on a day specified in the order, as soon as he is satisfied that nothing further remains to be done by the Corporation under Schedule 2 to this Act.

• (6) Schedule 2 to this Act shall have effect for supplementing the provisions of this section.

Duty of Agency to dispose of surplus property etc.

4

• (1) It shall be the duty of the Agency to dispose of or discharge, on the best terms reasonably obtainable, all of the property, rights and liabilities vested in it by virtue of section 3 above except such as may be determined by the Secretary of State to be property, rights and liabilities which, having regard to the matters mentioned in subsection (2) below, should continue to be vested in the Agency.

• (2) The said matters are—

• (a) the Agency’s functions under section 2 above; and

• (b) such amount as may be determined by the Secretary of State with the approval of the Treasury to be the amount required by the Agency as initial capital.

• (3) Any sums received by the Agency under subsection (1) above, other than such sums as may be determined by the Secretary of State with the approval of the Treasury to be sums required to be retained by the Agency for meeting expenditure incurred by it under that subsection, shall be paid to the Secretary of State; and any sums received by the Secretary of State under this subsection shall be paid into the Consolidated Fund.

• (4) Any expenditure incurred by the Agency under subsection (1) above shall, except in so far as it is met out of sums retained under subsection (3) above, be defrayed by the Secretary of State out of money provided by Parliament.

• (5) For the purposes of this section any expenditure incurred by the Agency under paragraph 3 or 4 of Schedule 2 to this Act shall be regarded as expenditure incurred by the Agency under subsection (1) above.

Supplementary provisions with respect to Agency

5

• (1) It shall be the duty of the Agency to comply with—

• (a) any general or specific direction given by the Secretary of State with respect to the exercise or performance of any of its functions under this Act; and

• (b) any notice given by the Secretary of State with the approval of the Treasury requiring it to perform duties of a financial nature specified in the notice.

• (2) Subject to Schedule 3 to this Act, the Agency shall have power to do anything which is calculated to facilitate, or is incidental or conducive to, the exercise or performance of any of its functions under this Act including, in particular, power to appoint other persons to exercise or perform any of those functions on its behalf.

• (3) Schedule 3 to this Act shall have effect for making financial and other provisions with respect to the Agency.

Interpretation

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In this Act—

• “the Agency” means the Oil and Pipelines Agency;

• “the Corporation” means the British National Oil Corporation;

• “participation agreement” means—

• (a) any participation agreement as defined in section 1 of the Participation Agreements Act 1978; or

• (b) so much of any scheme made under section 2 or 10 of the Oil and Gas (Enterprise) Act 1982 as would, if made by agreement, constitute a participation agreement as so defined;

• “ petroleum ” has the same meaning as in Part I of the Petroleum Act 1998;

• “subsidiary” and “wholly owned subsidiary” have the meanings given by section 1159 of the Companies Act 2006;

• “the transfer date” has the meaning given by section 3(1) above;

• “the transitional period” has the meaning given by section 3(4) above.

Amendments, repeals and saving

7

• (1) The Participation Agreements Act 1978 shall have effect as if references to the Corporation (except the last reference in section 1(3)) were, in relation to agreements entered into after the transfer date, references to the Agency.

• (2) In section 33(2)of the Oil and Gas (Enterprise) Act 1982 (stamp duty) for the words “either Corporation” there shall be substituted the words “the Gas Corporation”.

• (3) In Part I of Schedule 4 to the National Audit Act 1983 (bodies to which section 7 of that Act does not apply) there shall be inserted (at the appropriate place) the following entry—

The Oil and Pipelines Agency

.

• (4) The enactments mentioned in Schedule 4 to this Act are hereby repealed to the extent specified in the third column of that Schedule.

• (5) The repeal of section 2 of the Oil and Gas (Enterprise) Act 1982 shall not affect the operation of any scheme made under that section before the transfer date.

Short title, commencement and extent

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• (1) This Act may be cited as the Oil and Pipelines Act 1985.

• (2) Subject to subsection (3) below, this Act shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be so appointed for different provisions or for different purposes.

• (3) Section 3 above, Schedule 2 to this Act and Part I of Schedule 4 to this Act shall come into force on the transfer date; and Part II of the said Schedule 4 shall come into force on the dissolution of the Corporation.

• (4) This Act extends to Northern Ireland.

SCHEDULE 1

Appointment and tenure of members

1

• (1) The members of the Agency (including the chairman who shall be appointed as such) shall be appointed by the Secretary of State.

• (2) A person so appointed shall hold and vacate office in accordance with the terms of the instrument appointing him and shall, on ceasing to hold office, be eligible for reappointment.

• (3) The instrument appointing a member shall not, except with the approval of the Treasury, include terms entitling him to compensation on his ceasing to be a member.

Remuneration etc. of members

2

• (1) The Agency may pay to any member such sums, whether by way of remuneration or allowances or otherwise, as the Secretary of State may determine.

• (2) The Agency may pay or make provision for paying to or in respect of any member or former member such sums by way of pensions, allowances or gratuities as the Secretary of State may determine.

• (3) Where a person ceases to be a member in circumstances in which, by the terms of the instrument appointing him, he is entitled to compensation of any amount, the Agency shall make to him a payment of that amount.

• (4) Where—

• (a) a person ceases to be a member otherwise than on the expiry of his term of office;

• (b) sub-paragraph (3) above does not apply; and

• (c) it appears to the Secretary of State that there are special circumstances which make it right for that person to receive compensation,

the Agency may make to him a payment of such amount as the Secretary of State may determine.

• (5) The approval of the Treasury shall be required for any determination under this paragraph.

Parliamentary etc. disqualification of members

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In Part II of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified) there shall be inserted (at the appropriate place) the following entry—

The Oil and Pipelines Agency

;

Staff

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• (1) The Agency may appoint a person (who may be the chairman or another member) to act as chief executive of the Agency; but a person shall not be appointed in pursuance of this sub-paragraph except with the approval of the Secretary of State.

• (2) The Agency may appoint such other officers, and take into its employment such persons, as it may determine.

• (3) The Agency may, as regards such of its officers or employees as it may determine, pay to or in respect of them such pensions, allowances or gratuities, or provide and maintain for them such pension schemes (whether contributory or not), as it may determine.

• (4) If any officer or employee of the Agency, being a participant in any pension scheme applicable to his office or employment, becomes a member of the Agency, he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service as a member of the Agency were service as an officer or employee of the Agency, notwithstanding that benefits will be payable to or in respect of him by virtue of paragraph 2(2) above.

Proceedings

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• (1) The quorum of the Agency and the arrangements relating to its meetings shall be such as the Agency may determine.

• (2) The arrangements may provide for the exercise or performance, under the general directions of the Agency, of any of the Agency’s functions by a committee or by one or more of the members, officers or employees of the Agency.

6

The validity of any proceedings of the Agency shall not be affected by any vacancy among the members or by any defect in the appointment of a member.

Authentication of seal

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The application of the seal of the Agency shall be authenticated by the signature of an officer of the Agency authorised by the Agency to act in that behalf.

Presumption of authenticity of documents

8

Any document purporting to be an instrument issued by the Agency and to be sealed as aforesaid or to be signed on behalf of the Agency shall be received in evidence and shall be deemed to be such an instrument without further proof unless the contrary is shown.

SCHEDULE 2

1

Any agreement made, transaction effected or other thing done by, to or in relation to the Corporation which is in force or effective immediately before the transfer date shall have effect as from that date as if made, effected or done by, to or in relation to the Agency, in all respects, as if the Agency were the same person, in law, as the Corporation, and accordingly references to the Corporation—

• (a) in any agreement (whether or not in writing) and in any deed, bond or instrument;

• (b) in any process or other document issued, prepared or employed for the purposes of any proceeding before any court or other tribunal or authority; and

• (c) in any other document whatsoever (other than an enactment) relating to or affecting any property, right or liability of the Corporation which vests by virtue of section 3 of this Act in the Agency,

shall be taken as from the transfer date as referring to the Agency.

2

It is hereby declared for the avoidance of doubt that—

• (a) the effect of section 3 of this Act in relation to any contract of employment with the Corporation in force immediately before the transfer date is merely to modify the contract (as from that date) by substituting the Agency as the employer (and not to terminate the contract or vary it in any other way); and

• (b) that section is effective to vest the rights and liabilities of the Corporation under any agreement or arrangement for the payment of pensions, allowances or gratuities in the Agency along with all other rights and liabilities of the Corporation;

and accordingly any period of employment with the Corporation or a wholly owned subsidiary of the Corporation shall count for all purposes as a period of employment with the Agency or (as the case may be) a wholly owned subsidiary of the Agency.

3

• (1) ) It shall be the duty of the Corporation and of the Agency to take, as and when during the transitional period the Agency considers appropriate, all such steps as may be requisite to secure that the vesting in the Agency by virtue of section 3 of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law.

• (2) During the transitional period, until the vesting in the Agency by virtue of section 3 of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law, it shall be the duty of the Corporation to hold that property or right for the benefit of, or to discharge that liability on behalf of, the Agency.

• (3) Nothing in sub-paragraphs (1) and (2) above shall be taken as prejudicing the effect under the law of the United Kingdom or of any part of the United Kingdom of the vesting in the Agency by virtue of section 3 of this Act or this paragraph of any foreign property, right or liability.

• (4) The Corporation shall have all such powers as may be requisite for the performance of its duty under this paragraph, but—

• (a) it shall be the duty of the Agency during the transitional period to act on behalf of the Corporation (so far as possible) in performing the duty imposed on the Corporation by this paragraph; and

• (b) any foreign property, rights and liabilities acquired or incurred by the Corporation during that period shall immediately become property, rights and liabilities of the Agency.

• (5) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have been determined (in accordance with the rules of private international law) by reference to the law of a country or territory ouside the United Kingdom.

• (6) Any expenses incurred by the Corporation under this paragraph shall be met by the Agency.

4

• (1) ) Notwithstanding the repeal of section 15 of the Petroleum and Submarine Pipe-lines Act 1975, it shall be the duty of the Corporation to make a report to the Secretary of State in accordance with that section in respect of the final accounting year of the Corporation.

• (2) Notwithstanding the repeal of section 10 of that Act, it shall be the duty of the Corporation to prepare statements of accounts in accordance with subsections (1)(b) and (2) of that section in respect of the final accounting year of the Corporation, and that section shall continue to apply during the transitional period in relation to those statements and in relation also to the auditing of those statements and of accounts kept in accordance with subsection (1)(a) of that section in respect of that accounting year.

• (3) Without prejudice to the requirements of sub-paragraph (2) above, every statement of accounts prepared by the Corporation under that sub-paragraph shall comply with any requirements which the Secretary of State has with the approval of the Treasury notified in writing to the Corporation relating to the methods and principles according to which the statement is to be prepared.