MercoPress. South Atlantic News Agency
Will UK demand hydrocarbons income from the Falklands?
MP's grilled government officials on OT oil resources Will the United Kingdom demand an income from any revenues from hydrocarbons found around the Falkland Islands, was a question asked of a British Minister at the current enquiry into the Foreign and Commonwealth Office's management of British Overseas Territories.
The Minister for Overseas Territories Megg Munn told Foreign Affairs Committee Member Eric Illsley: "We have not yet got to the position where any have been located. That would be a discussion we would have with the Falkland Islanders." Mr Illsley then asked, "But will the Government be looking to obtain an income stream from that development?" The Minister said, "That would be part of negotiations with the Falkland Islanders. They have not found any so we have not had that discussion." Mr Illsley said he interpreted her reply as 'yes'. The discussion followed on from questions relating to the fact that currently the Governor of the Falklands would need to give permission if there were to be a major new change of policy on hydrocarbons, for example in relation to licensing a number of major new areas of Falkland Islands' waters. Mr Illsley had asked whether that implied that Her Majesty's Government owned the rights to hydrocarbons around the Falklands. Another individual giving evidence, Leigh Turner, replied saying, "No, the Falkland Islands own the resources about which we are talking. But the point is that we regard something as important as the development of hydrocarbons as having potential international implications so it is right that we have some sort of handle on it". Turner had previously explained, "What happens at the moment is that the Falkland Islanders have, in a number of cases, requested permission to license areas of hydrocarbon development. Those permissions have been granted and the development of hydrocarbons is going ahead?" Rig options are currently being considered for drilling in the South Atlantic and prospect site surveys are due to take place later this year. License holder Falkland Oil and Gas is poised to start drilling on in the South and East of the Falkland Islands soon while farm-in partner BHP Billiton examines rig options. (Some of the information in this article was taken from an uncorrected transcript of evidence taken in public and reported to the House of Commons. Members of the Committee have not yet had the opportunity to correct the record. The transcript is not yet an approved formal record of these proceedings.) By Lisa Johnston – Se Aled PR – Stanley
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