An Italy/France connection to Falklands oil

26 Jun

Reuters

Britain’s Falkland Oil & Gas said Italian utility Edison was its new partner, bringing in a large, non-British company to help it look for oil in the UK-governed Falkland Islands.

FOGL on Tuesday named Edison, which is owned by French group EDF, as the unnamed company which it said in March had bought an option to invest in its license areas off the coast of the remote Falkland Islands in the South Atlantic. The British company said Edison would pay around $50 million for costs already encountered in earlier exploration work and 2012 drilling costs for a 25 percent interest in its northern licenses and a 12.5 percent in its southern licenses.

Edison would also make a separate cash contribution of $40 million to FOGL, the company said. “Overall this looks like an attractive deal for FOGL and highlights that the acreage is attracting interest from larger industry participants,” analyst Nick Copeman said.

FOGL will drill a well off the south of the islands in July, after a rig completes drilling a well for another British explorer Borders & Southern.

Argentina has been raising the rhetoric since oil was first discovered in 2012, and has been threatening to sue any company that gets involved with the fledgling industry around the Falkland Islands. All licences for oil exploration are issued by the Falkland Islands Government and they stand to benefit should a large find come in. Britain has recently criticised Argentina for the aggressive stance it is taking which affect the lives of the 3000 Falklanders living in the South Atlantic archipelago. Argentina has threatened the air link with Chile and has attempted an economic blockade in recent months.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: