MercoPress. South Atlantic News Agency

Falkland Islands: Weekly Penguin News update

FIG CEO Dr M. Blanch and C&W Director A. Richardson sign the Heads of Understanding for the new Camp system.

Headlines:
New comms deal for Camp; Drilling agreement: 'biggest oil event in 10 years'; Royal Marines on Islands exercise; Men back in court today

New comms deal for Camp 'New service and broadband to be in place by end of 2009'A DEAL has been signed between the government and Cable and Wireless to provide Camp with a new and upgraded telephone service, offering broadband, from mid to late 2009. Following recent meetings between representatives of the government and the telecommunications company on terms for the replacement of the camp telephone system, Heads of Understanding were signed by the parties in the Secretariat yesterday afternoon. The government has agreed that the date on which the five-year notice under the exclusive licence can be given will be extended from the end of 2007 until the end of 2014 and says it is satisfied that a continued exclusive licence is, "...in the best interests of the Falkland Islands population." Aaron Richardson, a Director of Cable and Wireless South Atlantic Ltd said the company was pleased to have agreed the Heads of Understanding with the government and an extension to the licence. "We look forward to upgrading the services we currently provide to our customers in the rural communities of the Falkland Islands." The government's interim Chief Executive, Dr Michael Blanch, added, "Government is very pleased that agreement has now been reached on there placement of the Camp telecommunications infrastructure. "It is extremely important for the future development of Camp to provide good telephone and broadband internet services." Continued on page 2 Drilling agreement: 'biggest oil event in 10 years'A DEAL signed between Falkland Oil and Gas Ltd (FOGL) and giant Australian resources company BHP Billiton has been heralded by members of the South Atlantic hydrocarbons industry as, "...the biggest thing to happen in ten years." Under the agreement, which applies to FOGL's entire exploration acreage in the Falklands, a minimum of two exploration wells will be drilled in the next three years. BHP Billiton will acquire a 40% interest, with an option to increase its interest up to 65%, and will take over the operator ship of the licences. FOGL says the entry of BHP Billiton, a company with extensive deepwater exploration experience, into their licences, "...confirms our view of the significant petroleum potential of the South and East Falkland Basins." Chief Executive of FOGL, Tim Bushell, described the agreement as, "a landmark deal" for the company. "The introduction of a major company as a farm-in partner has been a key strategic objective over the last 18 months and we are delighted to welcome a partner of BHP Billiton's calibre and expertise. "We are now entering a very exciting phase for FOGL and the Falkland Islands. The results of our recent exploration programme and the introduction of BHP Billiton represent a significant step in realising the potential of the region." Mr Bushell is in the Islands for a meeting of the Falklands Joint Operators Group, made up of representatives of all the companies involved in exploration for hydrocarbons in the waters around the Islands, which usually meets in London every two or three months. The meeting in the Falklands is the first to have taken place for several years. Mr Bushell told Penguin Newsthis week that the agreement with BHP Billiton means drilling could begin as early as next summer as the company has its own rigs on long term lease. Rig availability has held up fellow exploration company Desire Petroleum's drilling for a number of years. (See page 4 for an update on Desire's activity.) Mr Bushell commented, "We've been aware of Desire's problems in getting a rig so we started looking around six or seven months ago and found the same thing they did, that the rig market is very tight, and there are not many available. This deal with BHP changes all that." Holder of the mineral resources portfolio, Councillor Andrea Clausen, described FOGL's agreement with BHP Billiton as, "...a massive step change." She commented, "This is very exciting news for the Falkland Islands; after almost ten years of being in a steady state this is a massive change of gear upwards for the industry. It has benefits not just for FOGL but the wider industry and Falklands plc." Argentine interferenceArgentina has announced it will write to companies involved in exploration in the Falklands, "...warning them of the illegitimacy of their acts and legal sanctions applicable." Continued on page 3 Royal Marines on Islands exerciseONE hundred and twenty Royal Marines will be on exercise in the Falklands over the next two weeks. The men, the majority of whom are reservists, are in the Islands as part of an exercise organised by 1982 veteran Lt Col John Davies RM who was wounded in the assault on Two Sisters Mountain. He arrived in the Islands early this week with an advance party of around 15 men to set up the exercise, and the remaining Marines arrive on today's airbridge. Every year the reservists take part in a two week exercise but this is the first to be held in the Falklands. They will head straight to San Carlos from where they will yomp to Onion Range for a week of work. They will be split into two groups and while one group is live firing the other will have a chance to take in the wildlife and participate in battlefield tours. Depending on how this exercise goes, Lt Col Davies would like the Falklands tour to become a regular part of his men's training. He explained, "Certainly the Royal Marines should maintain their links with the Islands and it's a great place to train." However, he added that the logistics of such an exercise in the Falklands are complicated and this 'test run' will determine whether it will be considered as a regular training post. Men back in court todayTHE two men arrested last week have been respectively charged with rape of a child and assault of a child. The continuation of reporting restrictions mean the pair cannot yet be named. They were both refused bail when they appeared in court on Tuesday morning and will remain in custody until 1.30pm today. Inside Penguin NewsPage 13: Visiting craftsman Centre pages: Conservation Ball Page 6: What do you think of public spending? Page 5: Peat cutters on holiday