Falklands : Hydrocarbons Reserves are Present in the Falkland Islands
Submitted by Falkland Islands News Network (Juanita Brock) 29.10.2006 (Article Archived on 12.11.2006)
Oliver Morgan was naive when he claimed that no oil was found in the Falkland Islands.
HYDROCARBONS RESERVES ARE PRESENT IN THE FALKLAND ISLANDS
By J. Brock (FINN)
In his editorial piece entitled “Big Oil May Have to Get Even Bigger to Survive,” Oliver Morgan said something less than truthful about the state of the hydrocarbons industry in the Falkland Islands. In the late ‘90s we sank seven exploratory wells with indications of hydrocarbons in six of them. Further to this, seismic and aerial research has pin-pointed areas where reserves are said to be huge. None of this was brought out in Mr. Morgan’s article.
“Not only must the companies be able to offer technological solutions to these owners far ahead of those from the national oil companies, but they must be able to negotiate terms of access that ensure they get value from them that will stick over time. The arguments over the Sakhalin production agreements show how problematic this could be.
Within these constraints, if there are no finds outside national companies' territories (in the Falkland Islands, for example), there are hi-tech, high-value avenues to explore. Birol says: 'They will have to find access or look at other activities and niches - gas, LPG, biofuel - to make up the decline.' Investment by oil majors in alternative sources is currently a minute fraction of capital expenditure on oil and gas infrastructure. The other option is a mega-merger, such as between BP and Shell. This has become a major talking point. Gheit says: 'I believe that these companies are either thinking about, or actually discussing, the possibility of a merger’.”
To insinuate there is no oil in the North and South Falkland Basins when the seismic indicates we have reserves in commercial quantities is naïve to say the least. It is hoped that investors will take the story with a pinch of salt and have faith that hydrocarbons will be found in commercial quantities in the North and South Falkland Basins.
It’s true that we cannot find a rig or ship to come down to do further exploration but that is the only reason why there are no further positive developments in the location of viable reserves in the area.
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