Falklands : FALKLANDS ARE “GO” FOR OIL EXPLORATION
Submitted by Falkland Islands News Network (Juanita Brock) 24.01.2010 (Article Archived on 07.02.2010)
Desire Chairman, Stephen Phipps has confirmed that the exploration rig, Ocean Guardian, is progressing well and scheduled to arrive in Falklands waters early in February, weather and sea conditions depending.
FALKLANDS ARE “GO” FOR OIL EXPLORATION
By J. Brock (FINN)
Desire Chairman, Stephen Phipps has confirmed that the exploration rig, Ocean Guardian, is progressing well and scheduled to arrive in Falklands waters early in February, weather and sea conditions depending.
During an interview with FINN he also confirmed that the integrated pipe and lay-down facility at Coastel Road being constructed by Byron McKay is nearing completion with plans to base a majority of the shore support personnel from that area.
As reported last month on FINN there will be a financial benefit for the economy for entities involved in the pipe and lay-down facility, the movement of oil related cargo from FIPASS, People renting accommodation for shore based workers, Hotels accommodating workers and transport services. “Twelve Rooms at the Malvina House Hotel, 15 seats on the airbridge as well as the increased port activity is a significant contribution to the Falklands’ economy” said Mr Phipps.
Mr Phipps went on to say that once exploratory drilling is complete then these revenue streams will be dried up until there is another round of exploratory drilling possibly by FOGL, BHP Billiton and Borders & Southern.
Ocean Guardian is a semi-submersible rig suitable for exploring in shallower waters. This means that after Desire Petroleum finish their prospects in tranches C, D, and F, and Rockhopper Exploration end their drilling campaign in former Shell tranches, then BHP Billiton’s shallower prospects of Endeavour, Loligo and Nimrod could be drilled.
According to Mr Phipps there will be little information coming from the site. There will be an announcement when drilling commences and another when target depth is reached and how long it took to drill that depth. After a while the results of the drill will be announced.
Besides Desire’s Chairman, the CEO, Mr Ian Duncan, Finance Director Mr Eddie Wisniewski and PR Consultant Mr Ben Romney from Buchanan are visiting Also in the Falklands this week is Mr Sam Moody of Rockhopper Exploration. Rockhopper have discovered natural gas in one of their prospects.
When asked about what hydrocarbons products were being explored Mr Phipps said that “the main thought process is oil because that’s what’s believed to be there.” He shied away from commenting about natural gas.
When the exploration process is over and if hydrocarbons have been found, the exploration well will be tested. If no hydrocarbons have been found, exploratory wells will be plugged and abandoned. “If we can, we would like to stay, but that depends on rig availability,” said Mr Phipps.
In a tight rig market this could only be a wish, rather than a firm way forward. However, many exploratory rigs in other parts of the world have been kept for exploitation purposes in the past. This adds to a tight rig market, so if a rig can be secured for Falklands’ waters all the better.
At the end of the day after all the exploration is finished there will be slack hydrocarbons based revenue streams. To investors, I say, hang in there. The next few months could be interesting indeed.
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