MercoPress. South Atlantic News Agency

Falklands say oil development is to ensure sustainable economic future

British PM Brown has not doubt about the Falklands sovereignty

The Falkland Islands government said that hydrocarbons exploration is an important element to achieve a sustainable economic future for the Islands and quoted from British PM Gordon Brown New Year message when he said that there are “no doubts about UK sovereignty over the Falklands ” and the principle of self determination.

The Friday release from the Falklands’ government comes in the midst of a strong, escalating exchange between Buenos Aires and London over the imminent beginning of 2010 drilling operations, sometime in mid February when a contracted oil rig arrives to Falklands’ waters.

“The Falkland Islands Government is encouraged by the investment being made to establish whether there are commercial quantities of hydrocarbons in the Falklands. However, any potential revenues from exploitation will not feature in the Islands’ economic planning unless and until commercially viable reserves are discovered”, said the release.

The oil rig “Ocean Guardian” contracted by Desire Petroleum to drill north of the Falklands will also be drilling wells for Rockhopper Exploration and Falklands Oil and Gas Ltd in association with BHP Billiton.

The Falklands Executive Council in an extraordinary meeting last Wednesday revealed it hadº received new applications for seismic and geophysical surveys from other companies interested in the Islands hydrocarbons potential. The applications were considered and Falklands Governor Alan Huckle was advised to seek approval for them.

The release further on underlines Britain’s support of the development of the Falklands’ hydrocarbons industry and quotes PM Brown’s praise to the Islands’ government for their cautious and responsible attitude in not factoring any oil revenues in economic planning “since there is no guarantee of commercially viable reserves”.

But the opportunities and risks are there and “the British Government will continue to work with you on this agenda”.
The release ends recalling PM Brown’s statement that there are “no doubts about United Kingdom’s sovereignty over the Falkland Islands and that the principle of self determination underlies this.”

The full Falkland Islands Government Oil Statement, 5 February 2010 follows.

“One of the primary goals of the Falkland Islands Government is to achieve a sustainable economic future for the Islands. Encouraging hydrocarbons exploration remains an important element of that goal.

The operators drilling wells in the 2010 drilling phase have been required to gain comprehensive approval taking into consideration environmental, health and safety and technical issues. The Falkland Islands Government is encouraged by the investment being made to establish whether there are commercial quantities of hydrocarbons in the Falklands. However, any potential revenues from exploitation will not feature in the Islands’ economic planning unless and until commercially viable reserves are discovered.

In his New Year’s message to the Islands, the Prime Minister, Gordon Brown reinforced our view. He said: “The British Government will continue to support the development of your hydrocarbons sector. But there is of course no guarantee that commercially viable reserves will be found. And, should there be any, extraction will be some years away. You are right therefore not to factor any revenues into your economic planning. But the opportunities – and the risks – make careful preparations vital for this important work. The British Government will continue to work with you on this agenda.”

He went on to say that there are “no doubts about United Kingdom’s sovereignty over the Falkland Islands and that the principle of self determination underlies this.”