The incoming Labour government in October 1974 perceived significant deficiencies in the control and operation of the UK petroleum industry.

Set up a British National Oil Corporation … Take new powers to control the pace of depletion, pipelines, exploration and development".

[1] Furthermore, there was perceived to be little control over the development of oil pipelines to avoid unnecessary proliferation, to minimise damage, and to reduce the risk of pollution.

Its long title is: ‘An Act to establish the British National Oil Corporation and make provision with respect to the functions of the Corporation; to make further provision about licences to search for and get petroleum and about submarine pipe-lines and refineries; to authorise loans and guarantees in connection with the development of the petroleum resources of the United Kingdom and payments in respect of certain guarantees and loans by the Bank of England; and for purposes connected with the matters aforesaid.’ The Act comprises 49 Sections in 5 Parts and 4 Schedules:[3] The British National Oil Corporation was formally established on 13 November 1975.

[5] BNOC took over the oil and gas assets of NCB (Exploration) Ltd. a subsidiary of the National Coal Board.

[8] In 1976 BNOC obtained the majority of Burmah Oil Company’s UK interests in the Ninian and Thistle fields.

[6] The Labour government had intended to buy its way into oil finds as a full licensee with a 51 per cent interest.