OIL
Exploration for oil offshore the Falkland Islands is at a very early stage and no commercial discoveries have been made yet. In 1998 six wells were drilled to the north of the Islands resulting in a wealth of geological data. These first wells proved the presence of a very rich organic source rock that could have generated up to 60 billion barrels of oil, with oil and gas shows in five of the wells drilled, and one flowing live oil to the surface.
Strict environmental legislation regarding offshore surveying and drilling activities is in place. Licensed areas are well away from the coastline and companies are required to prepare environmental impact assessments and oil spill plans when planning drilling activities. In order to safeguard the fishery, seismic surveys are restricted in critical areas at specific times of the year. Oil companies operating offshore have also been able to collect new oceanographic and wildlife data, enhancing knowledge of the area.
The Falkland Islands are an attractive frontier area for exploration, with a number of companies licensed to explore for hydrocarbons. The Falkland Islands Government actively encourages licensees to cooperate in order to share facilities, rigs and data to maximise opportunities to drill when they arise. If a suitable drilling rig can be found, it is anticipated that further exploration drilling may take place in late 2009 or 2010. The Falkland Islands Government is well prepared for an exploration drilling phase and has robust legislation in place that mirrors North Sea regulations, particularly in the areas of health and safety and the environment.
Further information can be found on www.falklands-oil.com.
MINERALS
Falkland Gold and Minerals Ltd started its gold and minerals exploration programme in the Falkland Islands in 2004. In December 2004 the company raised £10 million before expenses and commenced drilling in March 2005. After a three year work programme, no mineral deposits of economic interest had been identified and the company announced the termination of the Falkland Islands programme in January 2008.
Modern mining legislation with required environmental and planning controls became law in the Falkland Islands in May 2005.
