Friday, January 25th 2013 - 05:43 UTC

Falklands make £8m transfer to “Oil Development Reserve”, future sovereign wealth fund

The government of the Falkland Islands has made a transfer of over 8 million pounds (£ 8.274 million) to the new Oil Development Reserve, a first step towards a ‘Sovereign Wealth Fund’ based on the Norwegian model it was explained at this week’s meeting of the Standing Finance Committee.

Oil industry and increased activity related to the 30th anniversary of the 1982 war boosted budget revenue

Falklands' government Secretariat

The Falkland Islands Government (FIG) was showing a surplus of £3.910 million compared to a revised budget surplus of £3.515 million, a favourable performance of £0.395 million in first six months of the 2012/13 financial year.

This appeared less than anticipated, explained the FIG Management Accountant, due to the transfer of oil related taxation receipts to the Reserve.

The Reserve forms a separate part of the Consolidated Fund and the intention is for the first call on this Reserve to be for projects and funding which will encourage the development of oil and ensure that the Falkland Islands is ready for further development.

Under Operating Revenue, taxation revenues for the first two quarters of the year came in at £7.548 million above estimate, predominantly due to higher taxation receipts from oil exploration than were projected in the original budget.

Corporation tax receipts from local companies were also higher than anticipated.

The Department of Natural Resources was £119,000 favourable due to revenues at FIPASS in excess of the amounts projected in three areas, primarily due to the oil exploration work underway (berthing fees, water sales and rent).

Health and Education was £450,000 favourable due to unanticipated Medical Service Tax receipts of £452,000, mainly from individuals working within the oil industry and Central Services was £91,000 favourable based on extra revenue from Stanley Airport due to use by the oil industry, strong stamp sales in the Philatelic Bureau and FIGAS flight revenue, possibly driven by increased traffic relating to the 30th anniversary of the 1982 war.

FIG operating expenditure was around £1.1 million favourable and under Capital Expenditure, capital schemes were currently behind schedule by £5.853 million.

This was described as partially down to highways projects, however, spend was expected to accelerate in the second half of the year.

Infrastructure development was also behind schedule (primarily at Sapper Hill) however, this position was also expected to recover later in the year. (Penguin News).

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1 travellingscotsman (#) Jan 25th, 2013 - 08:30 am Report abuse
This is the real reason why the RG's want the Falklands is because they want to learn how to manage their own economy better! Who could possibly argue that such a well run, democratic state should just be handed over to the RGs ? They have no argument and this articel really should make them realise just how different the Falklands are from their mismanaged, beaurocratic, and corrupted government!
2 reality check (#) Jan 25th, 2013 - 08:46 am Report abuse
Stand by for a post from think, pooh poohing this article, with news of falling stock prices and company directors abandonning ship in droves. Nothing if not predictable.
3 Anglotino (#) Jan 25th, 2013 - 09:05 am Report abuse
@1 and 2

Hard to argue with cold hard cash though isn't it!

Especially denominated in a strong reserve currency that's not in free fall. Also without high inflation, this amount will still be worth the same amount in 12 months time.

So my bet is on someone trying to change the topic within the first...... 10 posts. Only 7 to go!
4 Orbit (#) Jan 25th, 2013 - 09:15 am Report abuse
@2 Indeed, which we will counter with comparisons to YPF and it's demises impact on hundreds of thousands of Argentine pension funds (not to mention inflation).

PH will then appear with some rant about theft of resources and a nuclear defence programme and references to imperialist colonialist genocide of afghan babies, with a link to axis of truth or whatever subjective gibberish he has found this month.

Conqueror will let rip with a pre-emptive tactical nuclear post.

Ttt will say we are all being mean and that Argentina should go the isolationist route.

Think will chuckle, Elaine will be the voice of reason, LEP will provide some good analysis, Yankee will back up Arg is doomed with macro economic facts and we'll all be home for tea time.
5 Frank (#) Jan 25th, 2013 - 09:28 am Report abuse
you wont be going home for tea until Marco has posted an ageing and totally offf topic link to the plight of the Chagossians.....
6 stick up your junta (#) Jan 25th, 2013 - 10:08 am Report abuse
and a sprinkling of “UK is finished ja ja ja ja ja j”
7 Frank (#) Jan 25th, 2013 - 10:17 am Report abuse
And if we are truly blessed El Thicko will offer up a treat from his sock drawer.....
8 reality check (#) Jan 25th, 2013 - 10:30 am Report abuse
My money's on him posting the latest Rockhopper figures.
9 Escoses Doido (#) Jan 25th, 2013 - 11:13 am Report abuse
you am murder, murderer pirates!!! kelper squaters!!!

thank you please.
10 Viscount Falkland (#) Jan 25th, 2013 - 11:25 am Report abuse
Money left over for Jan Cheek to hire a jet at $800,000 and rename it' Benny one' and go and inspect some fox holes in Vietnam.......................Well,that is what serious politicians do, ... isn't it ?
11 andy65 (#) Jan 25th, 2013 - 12:31 pm Report abuse
@Escoses Doido, Well we have not resorted to throwing each other out of military aircraft yet or does that not count as murder is it some kind of Argentine pass time
12 Rufus (#) Jan 25th, 2013 - 12:36 pm Report abuse
@11 Andy

They don't do that any more though. After all, what proportion of their military aircraft are actually airworthy?
13 Malvinero1 (#) Jan 25th, 2013 - 12:47 pm Report abuse
Falklands make £8m transfer to “Oil Development Reserve”, future sovereign wealth fund
Incredible,the brits crooks......First you have to find oil.....

Money left over for Jan Cheek to hire a jet at $800,000 and rename it' Benny one' and go and inspect some fox holes in Vietnam.......................Well,that is what serious politicians do, ... isn't it
Better than the conservatives crooks you have in the uk...
Proof that Cameron lied over oil find in the Falkland Islands

and a sprinkling of “UK is finished ja ja ja ja ja j”
Sure here you have some more
AHAHAHa anyway nothing the MAlvinenses can do WITHOUT Argentina support for the “oil”extaction.....(The reality there is NO OIL is just a scam...
Poor deluded ex empire..
Which country has the most shale gas reserves outside of the United States and China?

Canada? Nope.

Australia? Wrong again.

According to the U.S. Energy Information Administration (EIA), Argentina ranks third in recoverable shale gas reserves. Argentina has 774 trillion cubic feet (Tcf) of technically recoverable shale gas resources, with more than half of that in the Neuquén Basin on the western side of the country.
And we will make sure the brits and MAlvinenses got NOTHING..anyway the brits will be destroyed.....PAyback time!!
AHAhaah poor imbeciles..
14 Martin Woodhead (#) Jan 25th, 2013 - 12:56 pm Report abuse
#12 classic.
Malvinero1 get on with turning Argentina into a rich prosperous succesful country then you might be attractive to the falklander islanders.
While your a basketcase with a victim mentalitly you've no hope.
15 Gustbury (#) Jan 25th, 2013 - 12:58 pm Report abuse
a lot of stupid comments!! poor guys!!! :(
16 Orbit (#) Jan 25th, 2013 - 01:15 pm Report abuse
@13 - Malvinero ... proof that despite years of opportunity to know better, there are still people who believe everything the read on the internet. Want to invest in my Structured Capital (Nigeria) 7000% return fund ?

“nothing .... can do WITHOUT Argentina support”. Heard of FPSOs ? Or Chile?

Good for you re shale gas; but make sure you do that whole planning, design and investment analysis first (let me know if you need help with these terms/concepts), and don't whatever you do, nationalise it! You wouldn't want it to go the way of Venezuela's oil production.

@15 - call the Oxford debating society; with such wit and cutting insight, looks like we have found ourselves a master debater.
17 Zool (#) Jan 25th, 2013 - 01:20 pm Report abuse
@13 Poor Malvinero1, Your not the only one with large Shale gas reserves you know. Take a guess who's also got some of largest reserves in the world.

Britain's recent land Shale discovery of 2-300 tcf in the Blackpool basin plus its offshore reserves estimated to be around 1000 tcf could make Britain one of the world's biggest shale gas producers.
18 Foxtrot Indigo (#) Jan 25th, 2013 - 01:26 pm Report abuse

I couldn't agree more! Poor Malvinero1 has spouted more rubbish in one post than most achieve in an entire fourm!
19 agent999 (#) Jan 25th, 2013 - 01:31 pm Report abuse
Just imagine how much time he must have wasted
20 Conqueror (#) Jan 25th, 2013 - 02:01 pm Report abuse
@16 I found the comments @13 highly interesting. It seems that a certain “person” has a “sticky” keyboard. I wonder why that might be? However, I did a little research. It seems that Peter Eyre of Eyre International and his good, and extremely mobile, pal Gordon Bowden are well-known NWO whack-jobs. It seems that Gordon Bowden is also well known for being a confidential informant and confidante of innumerable police forces, British and foreign, intelligence agencies and foreign governments. In the article found at the link there are many “emails” from Bowden to various correspondents. I particularly noted the SFO and the argie government. Curiously, there were no replies. In a Google search, it appears that Bowden HAS appeared at the Royal Courts of Justice. When it was determined that he was both a liar and a stalker. Now, we all know that the concept of the necessity of argie support is ludicrous. Any commercial quantities of gas and oil will most likely be pumped up to floating installations and thence to appropriate tankers.
As for argie shale gas, it seems that they are still looking for “experts” and “money”. But there are some things that the we, and the argies, can look forward to. Shale gas extraction leads to the release of huge quantities of methane. Far worse for the climate than normal gas or coal. In addition, water and air quality suffers. Millions of litres of water laced with chemicals are pumped into the ground. But it can't all be recovered. Groundwater is contaminated and the whole area stinks. Earthquakes also increase by around 600%. I suppose that could revitalise the “extinct” Lanin volcano. Might want to steer clear of apples, pears, peaches etc produced in the area. Might also want to avoid fishing. Not only in Neuquen but also in Rio Negro and Chubut Provinces. You might die. Or mutate.
Aren't the malvinistas funny?
21 yankeeboy (#) Jan 25th, 2013 - 03:07 pm Report abuse
Congratulations! That is a great accomplishment in a very little time. Its also a lot of $/person! It is nice to see the wealth of a well managed stable people is growing.
and Rg look on in wonder and jealouse and will never get it.
envy will eat away your soul
22 Marcos Alejandro (#) Jan 25th, 2013 - 04:19 pm Report abuse
5 Frank the Yank...This reality is better
25 Jan 2013
“Britain is experiencing 'worse slump than during Great Depression'

”Britain's recent economic performance is the worst since records began in the pre-Victorian era“

Brit comment:

”What has happened to our nation....famous throughout History for producing world-class statesmen and leaders of the highest quality?
To anyone who knows British History well, the mess that our nation finds itself in today is incredible and astounding beyond belief!
Our independence gone, our national wealth being given away, our Armed Forces heading for extinction, our industries eliminated, our country flooded with too many immigrants to the point of endangering our national cultures and identities.....
Let us not fool ourselves any more!
Britain's situation is dire and desperate, our bright lights, fancy stores and glitzy entertainment notwithstanding.
Unless some strong, intelligent, responsible and patriotic leadership can be found for Britain, our nation is doomed to a third- or fourth- rate future.
Let us not fool ourselves any more!”
23 Room237 (#) Jan 25th, 2013 - 04:26 pm Report abuse
@22 It's ok by then the Falkland Islands will be making so much money they could prop up our failing economy.
24 Marcos Alejandro (#) Jan 25th, 2013 - 04:29 pm Report abuse
Yes, your favorite oil company Urinehopper will lead the way :-)))))))))
161.12 -3.25 (-1.98%) Down
25 Malvinero1 (#) Jan 25th, 2013 - 05:09 pm Report abuse
I couldn't agree more! Poor Malvinero1 has spouted more rubbish in one post than most achieve in an entire fourm!
AHAHAHAHAHAHA Poor deluded imperialist...MAlvinas are talking about PETROLEUM,since the 1970's..I have not seen even one drop yet......Anywy I have good info from the people Who actually do OiL extraction in Tierra del fuego,Onshore and Offshore.......NO there is very little possibility for OIL deposits in MAlvinas,BTW,Shell drilled in th e'70....Nothing important was found

Oil resources in the Falkland Islands, a British territory claimed by Argentina, are insufficient to be profitable, an ExxonMobil Corp (XOM.N) executive said, leaked U.S. documents show.

The cable from the U.S. Embassy in London was dated February 2010 and was about a new oil drilling effort then starting in the Falklands and a resulting rise in tension between Britain and Argentina.
Poor deluded ex useless...soo good for nothing

“ExxonMobil International Chairman Brad Corson told us he does not believe there is enough oil on the Falkland Islands Continental Shelf to be profitable, citing Shell's earlier oil exploration attempts which they abandoned,” the cable read.
26 Clyde15 (#) Jan 25th, 2013 - 05:33 pm Report abuse
Well Malv. you may be partly correct, but at least we can console ourselves that however bad it is here - I haven't noticed it yet - that it is nowhere as bad as the shit heap of Argentina. Poor deluded bunch of muppets.

Now, get back on to Google , start foaming at the mouth and think up some more items for our amusement.
I have a wonderful impression of you screeching at the computer in impotent rage.
27 Orbit (#) Jan 25th, 2013 - 05:35 pm Report abuse
@25 - That's excellent news then, as all the Malvinistas can stop banging on daily about “theft of resources”, as there's nothing to steal anymore. Thank goodness for that, we should get a bit of peace around here.
28 Think (#) Jan 25th, 2013 - 05:43 pm Report abuse

Article says...:
“Falklands make £8m transfer to “Oil Development Reserve””

I say....:

Wooooow.................. £8m!
That's about 1/1,000'th of the £8,000m that British investors have thrown, to date, into the South Atlantic Oil Prospection hoax....

You Kelpers are cheap!
29 Santa Fe (#) Jan 25th, 2013 - 05:49 pm Report abuse
28... Your right Think the investment in the oil field is all a hoax, investors always throw money into hoaxes. your just seething with envy that there is a chance the old black gold will be pumping soon. With Argentina to lazy to develop her own huge mineral deposits...Or maybe it's a UK government conspiracy to prop up the Falklands, like it ...we have a budding Sherlock Holmes in our midst keep it up super sleuth
30 Think (#) Jan 25th, 2013 - 06:08 pm Report abuse
Two Words for the Turnips....:

Mississippi Bubble......
31 Britninja (#) Jan 25th, 2013 - 06:10 pm Report abuse
@30 Three for you. Tedious. Old. Fart.
32 falklandlad (#) Jan 25th, 2013 - 06:18 pm Report abuse
@28... Think, I believe you've inflated the actual prospecting investment believed to be nearer £800m than £8000m. Too many zero's old chap. Best if you see the ratio as it should realistically be. Sorry to upgrade your cheapness!
33 J.A. Roberts (#) Jan 25th, 2013 - 06:31 pm Report abuse
The Mississippi bubble was a French problem. Why involve them?

“Think” out by an order of magnitude... nothing changes then...
34 Think (#) Jan 25th, 2013 - 06:33 pm Report abuse
(32) falklandlad

I may have overestimated the “actual” prospecting investment...
Difficult to keep “Ajour” with all those ups and downs...
But at £800m you are certainly underestimating it...

Anyhow.... at £8m, you Kelpers are still dirt cheap ;-)
35 Monkeymagic (#) Jan 25th, 2013 - 06:38 pm Report abuse
Quite an extraordinary thread....

I hate to be the bearer of bad news for Malvinero1, but sadly for him it is no scam. The North Falklands basin already has 300-500 million barrels discovered with “best estimates” of maybe treble that.

If you haven't seen a drop yet, you haven't been looking, as during a flow test, the Sealion discovery flowed at 9000 barrels per day from a single well.

From memory, Premier Oil who are now the operator plan 18-24 of these wells by 2019, with first production in 2017.

Conservatively speaking, this £8m transfer to the sovereign fund could become a near daily occurrence in the next decade.

How long until the 3000 Falklanders have a higher GDP than the 40million Argies??

Chuckle chuckle
36 Conqueror (#) Jan 25th, 2013 - 08:31 pm Report abuse
@30 Surely it's “South Sea Bubble”? Would that refer to the Southern Ocean that you lot say doesn't exist. But every map shows.
@34 But then, you murderers are just cheap. Want to go back through your history and then deny your murderous, genocidal, national character?
@35 Are you talking per capita GDP? The Falklanders already have that. Argieland's per capita GDP is $18,205. The Falklanders' is $55,400. Go figure!
37 Islander1 (#) Jan 25th, 2013 - 09:11 pm Report abuse
Think- actually FIG has banked a lot more than £8million - for last 2 years we have been putting up to £12 million or so a year into the consolidated reserves fund.
On top of that a number of local business have invested in several £ millions of infrastructure in the Islands in support of the Hydrocarbons Industry - and a lot more is in the pipeline.

As for mad malvi - does a company like Premier commit to $3 billion investment over next 5 years just on a whim?
Is a company like Noble Energy spending some $1/4 billion in 2013-2014 just on a whim?
38 CJvR (#) Jan 25th, 2013 - 10:11 pm Report abuse
I suspects KFC is stung by every £ slipping through her fingers.
39 Doveoverdover (#) Jan 25th, 2013 - 10:59 pm Report abuse
For the period April to December 2012, UK public sector net borrowing was £106.5 billion. Integration of oil revenue directly into the UK exchequer and hence into the British economy is becoming an imperative, particularly if an exit from the European Union is to be an option.
40 Think (#) Jan 25th, 2013 - 11:20 pm Report abuse
(39) Mr. McDod

£106.5 billion..... That's a lot of borrowing for just three trimesters.

May I suggest that, in the future, the UK considers the “Norvegian National Model” for the managment of your North Sea oil reserves?
Still time to repair that big blunder the UK comitted some forty years ago.....

Some Malvinas Devolution would also help repairing another big blunder the UK comitted some 180 years ago....
41 Orbit (#) Jan 26th, 2013 - 12:13 am Report abuse
Think think think... we need to sit down and talk matey. Do you seriously think anyone will take advice on models, from the land of the legendary “counter model” ?

Actually, you might have a point! We'll outsource our stats office to Indec and within 24 hours our borrowing will be vastly down, GDP growth will be any figure we fancy and if anyone complains we'll just whinge to the courts for ten years about the real world being so unfair! Sorted !!!!!!!
42 Anglotino (#) Jan 26th, 2013 - 01:05 am Report abuse
Think (who can't seem to)

”Anyhow.... at £8m, you Kelpers are still dirt cheap ;-)”

So I'm trying to work out which nationality is cheaper. The Falkland Islander's £8 million sovereign wealth fund or the Argentinean one.

So a little research shows that Chile has one. So does Brazil. Venezuela has one though it's quite small considering their oil wealth. Even Peru has one.

But not Argentina.

So FIG puts away nearly £3,000 for each resident which equates to more than ARS35,000.

The Argentinean government puts away £0 which equates funnily enough to ARS0 too.

Easy to see who is going cheap these days.
43 reality check (#) Jan 26th, 2013 - 08:59 am Report abuse
See Marcos is at it again about the UK, well he ought to know, he's lived here long enough!
44 surfer (#) Jan 26th, 2013 - 03:11 pm Report abuse
This talk of money has bought out a handful of CFK supporters, this in a week when the peso is pushing 8 to the dollar, green with envy doesn't even come close.

How's the sky looking over in Arg, look closely and you'll see it's already started falling...
45 Marcos Alejandro (#) Jan 26th, 2013 - 06:17 pm Report abuse
43 Long enough indeed!...Three days were long enough.
46 reality check (#) Jan 26th, 2013 - 06:37 pm Report abuse
Yeah, yeah, yeah, it's got bells on!
47 Marcos Alejandro (#) Jan 26th, 2013 - 10:05 pm Report abuse
Yeah, yeah, yeah...James Vond
48 surfer (#) Jan 27th, 2013 - 12:16 am Report abuse
feel the frustration from Arg, tangible, we got a full house, even lord Haw-Haw is back on the jabber.
49 Clyde15 (#) Jan 27th, 2013 - 10:19 am Report abuse
Were you deported ?
50 Escoses Doido (#) Jan 27th, 2013 - 12:11 pm Report abuse
What's your uk address mate?

These people will want to talk with you.
51 Marcos Alejandro (#) Jan 27th, 2013 - 05:16 pm Report abuse

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