UK To Drill for Oil in Falklands
by Tom McGregor    Thu, Feb 16, 2012, 11:06 PM
Great Britain will share in a Falkland Islands windfall when oil begins flowing there later this decade. Taxes and royalties could amount to $167 billion which may explain why Hollywood actor Sean Penn, who is starring in a new role as an Argentinean rabble-rouser, feels so much rage against the British government.

Reuters News Agency reports that, “Sea Lion, a field discovered in 2010 north of the islands by explorer Rockhopper, will generate $10.5 billion of tax and royalty revenues for the Falklands over its estimated 20-year life, Edison Investment Research said on Thursday.”

Over the years, the windfall could surge up to $167 billion. Analysts of Edison said that if four wells being drilled this year off the southern coast and targeting 8 billion barrels of oil resources come in as expected – the chances of success at these wells are 10-25 percent, analysts have stated.

According to Reuters, “when oil starts flowing, and in whatever quantity, the Falkland Islands will contribute to the cost of its defense, which is currently paid for entirely by Britain, local assembly member Gavin Short told Reuters in a telephone interview.”

On Thursday, he said, “we have always said once we have found out what we have got and it started flowing, then it would be our intention to make contributions (to Britain).”

To read the entire article from Reuters, link here:

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