THE threat of Brussels taking control of Britain's North Sea oil and gas industry was brushed aside by the government last night as MPs expressed growing concern Tony Blair was about to ''sell out'' the industry.

A senior Whitehall source said ministers were ''confident'' they would emerge triumphant in their talks on the new European constitution in that Britain would retain full command of its energy reserves.

''Energy will fall into place,'' insisted the source. ''I don't think there's a huge head of steam on this and I don't think we are up against great opposition. People recognise we have an interest and what it's worth to us in terms of jobs.''

Around 250,000 people work in the UK oil and gas industry, which fears the new EU constitution's energy chapter could give Brussels the final say on exploration for new fields and licences for supply and co-operation with outside countries such as non-EU

Norway, which works with the UK on the exploitation of North Sea reserves.

The energy chapter is due to be discussed at the EU general affairs council on Monday with the final decision coming at the full summit on December 13.

The source pointed out that Britain had substantial backing for its position that member states should retain full control over oil and gas, including support from the Netherlands, Finland and Denmark.

Ministers welcome the chance to have a new treaty which brings together various references on energy powers and sets them out clearly in one document. However, they have repeatedly asserted Britain will not sign up to anything which undermines the national interest.