Hydrocarbons
The second phase of exploratory drilling offshore the Falkland Islands commenced in February 2010. Diamond Offshore Drilling International's semi-submersible rig, Ocean Guardian, has been contracted to drill wells in the North Falkland Basin for Desire Petroleum plc and Rockhopper Exploration plc. Additionally, the rig will drill the first exploratory well to the south of the Islands for BHP Billiton Petroleum.
The Falkland Islands Government is encouraged by the significant investment made by the operating companies involved in hydrocarbons exploration, which is at a very early stage. No commercial discoveries of oil or gas have been made yet, but the first wells, drilled in 1998, proved the presence of hydrocarbons in the rich source rock of the North Falkland Basin.
Falkland Islands private sector companies are providing support services to the industry, and have prepared an onshore operating base in record time for the 2010 drilling operations.
Hydrocarbons industry activity in the Falklands' Offshore area is governed by Falkland Islands legislation. Operating companies are required to work to industry best practice standards, with particularly strong emphasis on health and safety and protecting the environment. A rigorous approval process is conducted before permission to drill is granted, which includes the production of Environmental Impact Statements, Oil Spill Contingency Plans, and a thorough appraisal of the technical and health and safety aspects of proposed drilling operations.
For further information visit www.falklands-oil.com.
