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Falkland Islands Oil Could Triple U.K. Reserves

Falkland Islands Oil Could Triple U.K. Reserves


By
Brian Swint
-

Jan 19, 2012 10:07 AM GMT


Thirty years after Margaret Thatcher
fought a 74-day war with Argentina over the Falkland Islands,
the prospect of an oil boom is reviving tensions.
Oil explorers are targeting 8.3 billion barrels in the
waters around the islands this year, three times the U.K.’s
reserves. Borders & Southern Petroleum Plc (BOR) will drill the
Stebbing prospect next month, one of three Falkland wells that
Morgan Stanley ranks among the world’s top 15 offshore prospects
this year. Meanwhile, Rockhopper Exploration Plc (RKH) is seeking $2
billion from a larger oil company to develop the Sea Lion field,
the islands’ first economically viable oil find.

“The area is underexplored and highly prospective,” said
New York-based Morgan Stanley analyst Evan Calio. “These could
be like the high-impact wells in Ghana and Brazil a few years
ago that opened up a whole host of basins.”
A major drilling success will further raise the political
temperature as Argentina maintains its claim over the U.K’s
South Atlantic territory, 300 miles (483 kilometers) from the
Latin American coast. President Cristina Fernandez de Kirchner
said Britain is taking her country’s resources, while Thatcher’s
successor David Cameron yesterday accused Argentina of a
“colonialist” attitude that didn’t account for islanders’ rights.
Cameron has approved contingency plans to bolster U.K.
troops on the islands, and Prince William, a search and rescue
pilot and the second in line to the British throne, may spend
six weeks there this year, the Times of London reported today.
Not Negotiable
“We want to have a full and productive relationship with
Argentina,” said Foreign Office spokeswoman Sophie Benger in an
e-mailed response to questions. “Whilst the sovereignty of the
Falklands is not up for negotiation, there is still much we can
do together.”
The world’s largest oil companies like Exxon Mobil Corp.
and Royal Dutch Shell Plc face a dilemma: whether the potential
of a virgin basin outweighs the risk of a worsening
international dispute. While producers with interests in
Argentina, such as BP Plc, may be put off, others will want to
participate, said Tim Bushell, chief executive officer of
Falkland Oil & Gas Ltd. (FOGL), who’s looking for drilling partners.
“Big oil companies are used to dealing with political
risks, and bigger ones than some saber rattling by Argentina,”
Bushell said in a telephone interview, declining to name the
companies he’s talking to. “For every BP, there are other major
companies that don’t have an interest in Argentina.”
The Falkland Island government, which manages the
territory’s mineral rights for the 2,955 islanders, says the big
producers are interested and talking to the companies already
active in the region. Of the five U.K.-based explorers that have
drilled or plan wells, the largest, Rockhopper, has a market
value of 899 million pounds ($1.4 billion).
Patagonian Squid
“The Falklands is at a stage where a big company can take
a large share in what could be a big oil province,” said
Stephen Luxton, the Falkland Islands’ director of mineral
resources. “There is an active program of marketing by the
companies here. There are discussions going on, though we can’t
name names.”
Falkland Oil & Gas plans to drill the Loligo prospect later
this year, a well targeting 4.7 billion barrels of oil. Named
after a Patagonian squid, it’s the second-most prospective well
planned worldwide this year after one in Namibia, according to
Morgan Stanley. The company’s Darwin prospect will follow and
ranks sixth on the U.S. bank’s list.
Borders & Southern will start drilling the Darwin prospect
by the end of January, which seismic surveys suggest may hold as
much as 760 million barrels of oil and 3 trillion cubic feet of
gas. Stebbing, the target of the company’s second well, may hold
as much as 1.2 billion barrels.
New Province
Together, the four wells planned for the Falklands this
year are searching for about 8.3 billion barrels of oil. The
Jubilee field, which was discovered in 2007, propelled Ghana
into one of the world’s top 50 oil states. Brazil’s Lula field,
drilled in 2006, holds an estimated 6.5 billion barrels of oil
equivalent.
“There could be significant volumes down there and it
would open up a new hydrocarbon province,” Borders & Southern
CEO Howard Obee said in an interview. If the first two wells
are successful, “we’d like to do a big drilling program, not
only to appraise what we’d find but also drill up additional
prospects. To do that, we’d need quite a bit of money.”
While the company will probably be able to sell more shares
to determine the size of a discovery in this campaign, it may
have to sell stakes in prospects to develop them, said Tracy Mackenzie, an analyst at broker Brewin Dolphin in Edinburgh.
Borders & Southern holds a 100 percent interest in its fields.

http://www.bloomberg.com/news/2012-01-19/britain-s-oil-grab-in-falkland-islands-seen-tripling-u-k-reserves-energy.html


Added: Jan-19-2012 
By: ElegantDecline
In:
Other News
Tags: Oil, Britain, Argies
Location: Falkland Islands (Malvinas) (load item map)
Views: 5220 | Comments: 163 | Votes: 0 | Favorites: 1 | Shared: 5 | Updates: 0 | Times used in channels: 2
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  • Every country in the world is drilling their own fucking oil...except the USA. bent over and taking it in the ass from the left wing enviro nazis democrats.

    Posted Jan-19-2012 By 

    (6) | Report

    • @NaggerHater Keeping it for later? There is a large environmental movement which is very influential in a certain political party. Believe me, energy companies would tap it if they were allowed. Hell, Bush wanted to drill off the coast of Alaska's Arctic National Wildlife Refuge and the 9th Circuit has ruled against it time after time. Actually they've been trying to drill there since the 80s. Exxon Valdez kind of messed it all up.

      Posted Jan-19-2012 By 

      (1) | Report

    • @VikingRapeSquad Its been your Govt's policy for decades to use Saudi/Gulf oil...the Saudi's have manipulated your by selling it cheap

      But its your own Energy sector that have lobbied, arm-twisted your Govts to keep US dependent on foreign oil

      Nothing to do with Nazi's or socialists pal

      Posted Jan-19-2012 By 

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    • @migs1955 BP's screw up can't have helped

      Posted Jan-19-2012 By 

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    • @ElegantDecline For sure. Now the latest pipeline project is scrapped. Folks are screaming for energy independence and we just keep shooting ourselves in the foot. Oh well, I'm sure the Canadians would be happy to sell to the Chinese. Probably get a better price too. They deserve it.

      Posted Jan-19-2012 By 

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    • @ElegantDecline oh yes our own energy sector has stifled the use of our natural resources...they DONT WANT THE MONEY and would rather see the UK and Canada make the money...LOL!

      Im sure it has NOTHING to do with the left wing enviro nazis who support the socialist democrats 100% with campaign donations as special interest...LOL!!

      Posted Jan-19-2012 By 

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  • The Falklands belong to the U.K.. If the world just starts letting Argentina take places, they won't stop, until the world stops them.

    Posted Jan-19-2012 By 

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  • This is great to hear. I had thought that the falklands were dud for oil, until now.

    Posted Jan-19-2012 By 

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  • hey britain how bout loaning us a few billion barrels,it seems we dont want to drill our own,idiots running the show over here

    Posted Jan-19-2012 By 

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  • Funny how history, especially war, repeats itself.

    Liveleak sure could use some new naval footage, Argentina....

    Posted Jan-19-2012 By 

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  • And the prices at the pump will STILL go up every fucking week!!!

    Posted Jan-19-2012 By 

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  • 74 days, LOL @ Argentina, bring it !

    Posted Jan-19-2012 By 

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  • Good for the British...and to all my southamerican Brother defending the Argentinians...

    Here in Chile we dont forget they took all Patagonia from us when we were fighting Peru and Bolivia on 1979 ...then not happy with them those snakes send they navy to invade us on CHRISTMAS NIGHT only to be stopped by a storm and then very next day the mediation of the Pope...

    while still holding their best troop on our south frontier the ARGENTINIANS MILITARY MURDEROUS BASTARDS though they could easily ta More..

    Posted Jan-20-2012 By 

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  • good luck with that Argentina...... lol

    Posted Jan-19-2012 By 

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  • This is better than the Michael Owen goal in the 1998 World Cup!

    http://www.youtube.com/watch?v=BFcTVlLj8Q4

    Posted Jan-19-2012 By 

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  • Comment of user 'FearTheReaper' has been deleted by author (after account deletion)!
    • @FearTheReaper

      If the Argentinians are stupid enough, after all our new submarines have not been used in anger. The Falklands have never been part of Argentina, what next they lay claim to Chile? or maybe Brazil
      I do not wish Argentina any malice, but they seem to think we will let them? This time we will know the second they try to move.

      Posted Jan-19-2012 By 

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    • Comment of user 'dorbie' has been deleted by author (after account deletion)!
    • @dorbie Maybe he see his allies in Africa,and south America now,just a thought.

      Posted Jan-19-2012 By 

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    • @dorbie

      Dorb, i think its usual politics pretend to please one side (sealing a deal for industry) then carry on as normal.
      If argentina as stupid enough to try and take on Typhoons with obsolete aircraft or Vanguard and astute submarines with bathtubs then they will not stand a chance. We know the minute they start a military build up now.

      Posted Jan-19-2012 By 

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  • Yawn.Cannot see Argentina fighting us again and getting their asses whipped...again. :)

    Bring on the black gold!

    Posted Jan-19-2012 By 

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  • No matter how much oil Britain has, the price of oil at the pumps will continue to rise.
    I don't think Britain has the strength of arms or will to win another war over there.

    Posted Jan-19-2012 By 

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  • i hope when we leave the falklands all that is left behind for the argies will be sheep

    Posted Jan-19-2012 By 

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  • This conflict is no different than China trying to 'take back' Taiwan..

    I wonder if Argentina would back off if the oil was shared?

    Posted Jan-19-2012 By 

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  • ..this is a jackpot, the argies will be pissing on themselves for losing the war..

    Posted Jan-20-2012 By 

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  • Black Gold Goodie

    Posted Feb-18-2012 By 

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  • This is what the Falklands war was fought over. A bunch of sheep on a far away island isn't worth a massive war expenditure, but a couple of billion barrels of oil is. Both sides of the war knew what the prize was worth fighting for. Argentina had its capitol threatened to be turned to ashes.

    Posted Jan-19-2012 By 

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  • Falkland Islands British land hehehehehehehe

    Posted Jan-19-2012 By 

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    • @Freedomfighter77 Who do you think it belongs to then?

      Try asking the people who live there

      Posted Jan-19-2012 By 

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    • @ElegantDecline google earth and look how close it is to mainland of Argentina.but only 12800km from mainland of England heheheh

      Posted Jan-19-2012 By 

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    • @Freedomfighter77

      So? People living in Falkland have voted about this repeatedly and they do not wish to be part of Argentina.

      Also, how about Greenland? It is not all that long since greenland was part of Denmark. Argentina doesn't have any claim on Falkland if UK doesn't wan't it then it is more likely that Falkland goes independent than joins Argentina.

      Posted Jan-19-2012 By 

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    • @Freedomfighter77 So any country can claim ownership of another country, purely on the basis that it is closer?lol So japan should stake claim to New zealand? or Australia,America can stake claim to Canada.After all they are all ex British colanies.lol

      Posted Jan-19-2012 By 

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    • @Freedomfighter77 google earth and see how close Greenland is to Denmark hehe

      Posted Jan-19-2012 By 

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  • Naturally the americans are backing the Argies in their claim over the Falklands, or as Hillary im no good in bed Clinton calls them, 'the Malvinas'

    Weve gotta stop wasting money and lives fighting alongside the hillbillys and pour cash into properly defending these Islands....so we can enjoy the proceeds of all that black Gold

    Posted Jan-19-2012 By 

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  • yawn! of the companies that have tried, only 1 has found anything significant. More than a year ago.
    Not sure what the poit is of this article. Maybe to push up the price of the penny stocks of these companies.

    Posted Jan-19-2012 By 

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  • Comment of user 'updougdown' has been deleted by author (after account deletion)!
  • I was wondering why all this fight for a tiny island next to Argentina ... Now it all make sense .. ahaa

    Posted Jan-19-2012 By 

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    • Comment of user 'dorbie' has been deleted by author (after account deletion)!
    • @dorbie Looking at your attitude .. Seems like you have been living there to long.. Trailer Trash

      Posted Jan-19-2012 By 

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    • Comment of user 'dorbie' has been deleted by author (after account deletion)!
    • @BadNad

      just so i have it straight, you're suggesting David Cameron sent someone back in time to tell Thatcher there was oil in the falklands and that she therefore must defend them?

      Take your medication.

      Posted Jan-19-2012 By 

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    • @BadNad yep british dependent sheeple blindly followed their rulers into a war for oil.

      hows that for irony!?

      Posted Jan-19-2012 By 

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  • Funny how I remember Israel supplying arms to the Argentinians during this conflict, all because "Begin" the Israeli Zionist hated Britain and would have done anything to see them lose that war for the islands.

    Look it up, I believe Menecham Begin supplied arms Argentina, but sent them through Peru as a cover up. Slick the Jews, "Never forgive, Never Forget".

    Posted Jan-19-2012 By 

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  • You can guarantee that the there's surface to air missiles and British subs patrolling the area just in case Argentinian decides to invade again. We weren't prepared last time, but we are now. Saying that. I really believe that Argentinian should have the Island back, it's just that the population want to stay British that's the stumbling block.

    Posted Jan-19-2012 By 

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