New seismic data raises Falkland oil find chances
PORT STANLEY, Falkland Islands, Oct 20 (Reuters) - New seismic studies have given fresh indications that large quantities of oil may lie off the disputed Falkland Islands in the south Atlantic, geologists said on Monday.
Surveys carried out recently by the four companies with licenses to begin exploration drilling next spring have increased optimism that commercially recoverable quantities of oil will be discovered.
"We now have a number of surveys, both gravity and magnetic, and they are all pointing towards there being some significant structures in the north Falklands basin", Kevin Fielding, geologist with Amerada Hess (AHC.L), told Reuters.
Hess is one of 12 companies awarded a licence in the first Falklands oil round a year ago and as operator of Tranche A will drill the first well to the north of the islands. Anglo-Dutch Shell (RD.AS) (SHEL.L), British independent Lasmo (LSMR.L) and International Petroleum Corp (IRP.TO) of Canada, have joined Hess in the Falklands Offshore Sharing Agreement (FOSA) to share the costs of exploration drilling.
Hess has signed a three-year contract for the services of the Borgny Dolphin drilling rig, which is now being upgraded in a Norwegian yard to work in deep water, and which should begin work in the south Atlantic in May. Hess will use the rig to drill two wells while each of the other companies will drill one, and all four will share the estimated $9 million costs of commissioning the rig and transporting it to and from northern Europe.
"From the seismic data obtained we have seen some very exciting structures", said Andy Morrison, operations manager for Amerada Hess on the Falkland Islands. Morrison said FOSA had asked Argentine companies to bid for contracts to service the Borgny Dolphin despite rules barring Argentine citizens from landing on the islands. Britain fought a 10-week war to end a brief Argentine occupation of the islands in 1982. The two countries restored diplomatic relations in 1989 and six years later agreed a framework for oil and gas exploration off the Falklands.
Phil Richards of British Geological Survey, consultants to the Falkland government, said the latest seismic data increased the chances of oil being discovered from one in 12 to one in eight.
Source: biz.yahoo.com |
