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Stanley, Falkland Islands (UPI) Jul 6, 2010 Delays in results from what appeared to be a promising round of drilling for oil in the Falklands waters rattled investors, with shares of oil companies showing signs of renewed nervousness among the financial interests. Investor confidence in the Falklands' ambitious drilling and exploration program in the South Atlantic waters earlier received a battering from strongly worded pronouncements by Argentina, which claims sovereignty over the islands. The Falklands are a British Overseas Territory but Argentina maintains the islands, which it calls Malvinas, are an anachronistic remnant of British colonialism. The Falklanders of mostly British descent say they chose to stay under U.K. sovereignty after British forces repulsed a 1980 invasion led by an Argentine military junta that ruled the Latin American country at that time. Discovery of potentially significant reserves of crude oil and gas in the deep waters of the islands prompted Argentina to renew its sovereignty claim with fervor. The first major discovery in May heightened tensions with Buenos Aires. In June Argentina took its sovereignty claim to the United Nations, arguing against British rule. Britain has vowed to defend the islands against any renewed Argentine incursions and has reinforced defense on the islands and in the surrounding waters. Last week the oil-fueled dispute came to a head again as the Falkland Oil and Gas company indicated it would announce results of its latest drilling, then delayed the announcement. FOGL was drilling for oil on the Toroa prospect, south of the Falkland Islands but postponed its initial results, which it said could be available next week. Drilling of the site, the Toroa F61/5-1, began in May and reached depths of more than 8,900 feet. But the preliminary results didn't come through as expected. FOGL cited operational issues and the weather. Shares FOGL soared in anticipation of the results but slipped 6.5 percent on the news. Knock-on effects on other companies involved in the oil quest also worried investors. The Toroa prospect is located in Licence PL15, in which FOGL has a 49 percent interest alongside BHP Billiton. The company said it is planning a two-phase drilling program, starting at Toroa and then moving on to deeper waters though not until later 2010. FOGL is one of four listed groups operating in the Falklands, alongside Rockhopper Exploration, Desire Petroleum and Borders and Southern Petroleum. The exploration received a boost when the companies pooled resources to lease the Ocean Guardian drilling rig from Scotland. Desire Petroleum began work with Ocean Guardian but didn't report encouraging results. Rockhopper in May became the first of the four companies to report that it struck significant quantities of oil at its Sea Lion prospect in the North Falkland Basin.
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BP oil spill costs soar above 3 billion dollarsNew Orleans, Louisiana (AFP) July 5, 2010 BP's costs over the Gulf of Mexico oil spill soared Monday above three billion dollars, while a giant Taiwanese ship provided hope of revolutionizing on-sea skimming operations. "The cost of the response to date amounts to approximately 3.12 billion dollars, including the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid, and federal costs, ... read more |
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