Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: balisurf who wrote (495)	2/13/1998 9:44:00 PM
From: Tomas	Read Replies (2) \| Respond to of 2742

Falklands oil chief cautiously optimistic By Michael Rank LONDON, Feb 13 (Reuters) - Prospects for striking oil off the Falkland Islands in the south Atlantic look reasonably good and drilling is expected to begin in May, the head of the islands' oil department said on Friday. Phyllis Rendell, director of oil in the Falkland Islands government, said the first round of drilling would continue into the first quarter of next year, with a commitment to drill at least five wells in the seven tranches that have been opened for exploration. She said in a telephone interview from Port Stanley that she was "cautiously optimistic" that oil would be found although it was too early to predict the size of the reserves. The entire Designated Exploration Area around the Falklands is about 50 percent bigger than the U.K. North Sea, while the seven tranches to the north of the islands comprise only a small portion of this. Rendell said each of the five wells would be drilled for 40 to 60 days, and that drilling would begin soon after the rig Borgny Dolphin arrives off the islands in mid-April. The semi-submersible rig left the Scottish port of Aberdeen last week and is expected to arrive in about 10 weeks. Rendell said talks to open up a block situated between the disputed islands and Argentina had been slowed down by technical problems such as taxation, arbitration and health and safety. But she added: "They have not been delayed over any major differences." The talks were to have been completed by the end of last year. British government and oil officials say the problems are connected with marrying U.K. and Argentine legislation and are not political or diplomatic in nature. Britain and Argentina went to war over the Falklands in 1982 after they were invaded by Argentine forces. Argentina has long claimed the islands as part of its territory. Rendell said the sovereignty issue was set aside for the purposes of the talks and there was no deadline for the outstanding problems to be resolved. Many Falkland islanders still bitterly resent Argentina's invasion of the British colony. But Rendell, an islander born and bred, said her relations with Argentine officials she met at the talks were "quite cordial" and her fellow islanders had "got used" to the fact that she was negotiating with Buenos Aires government representatives. Reflecting the bitterness between the islanders and the Argentines, since the 1982 war there has been an almost total ban on Argentines visiting the Falklands. Operators of the seven tranches where drilling is to begin in May are: Amerada Hess, Royal Dutch/Shell, Lasmo, International Petroleum Corp and Desire Petroleum Ltd.