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Major oil companies vote of confidence for Falklands’ hydrocarbons industry

Monday, August 13th 2012 - 04:54 UTC
Full article 17 comments
Governor Nigel Heywood, by any standards “absolutely fantastic” Governor Nigel Heywood, by any standards “absolutely fantastic”

The incorporation of a major oil company is a sign of confidence in the future of the Falklands hydrocarbons industry and by any standards “absolutely fantastic”, said the Islands governor Nigel Haywood during an official reception at Government House for Rockhopper Exploration and their UK partners Premier Oil.

“It’s very, very good to see a major oil company come down here to join in the hydrocarbons industry of the Falklands; it’s a real sign of confidence in the future of the Islands industry and we look forward to working very closely”, said Governor Haywood in his welcome words to Rockhopper CEO Sam Moody and Premier Oil CEO Simon Lockett.

Premier Oil last month agreed to a billion dollar deal with Rockhopper Exploration to develop their Sea Lion discovery of oil.

“I think that by any standards it is absolutely fantastic in the way in which they have engaged with the Falklands in developing their exploration operations here”, added Governor Haywood who also admitted the Islands were facing some big issues, “quite scary”, since “we’re a very, very small government system here”.

Haywood said that the government and community have to think about the big questions of social and economic impact on the Islands of the development of the hydrocarbons industry.

But the fact that French, Italian and US companies are also participating is not only a vote of confidence but also means that the Falklands industry is being taken seriously.

Governor Haywood underlined the UK Government support for the Falklands oil industry and development which he described as “very valuable”.

“Anyone wanting to operate in the Falklands oil field has the full support from the British government in writing, saying that the Falkland Islanders have the right to exploit their own mineral resources and we the British government support that right and this commitment is very valuable”.

Finally Governor Haywood said he was pleaded to be in the Falklands in a period of time with the first signs that the hydrocarbons exploration is moving to a new phase.

Rockhopper CEO Sam Moody said that the deal with Premier represents a culmination of eight years of work and an investment of 500 million dollars, and was only possible because of the positive and friendly attitude of the Falkland Islands.

“I can honestly say it’s been a delightful place to do business for those eight years and I’ve got every confidence that Premier are going to deliver a safe and very efficient project so that we can get Sea Lion into production as quickly as is sensible”, said Moody.

Finally Premier CEO Simon Lockett said he admired the job done by Rockhopper and its reputation and also praised the business supportive attitude they have found in the Falklands.

“What can I say about what Rockhopper have done? They have been…I guess I’ve been quite jealous of what they’ve managed to achieve. Their absolutely fantastic exploration success in a very, very difficult and remote place to do business so I just hope that we can try and do anything half as good as what they’ve done to make sure the development works”.

He added that he hoped Premier can build with Rockhopper “on that reputation and work very effectively with everybody here and with the rest of the Falkland Islanders to make this a really successful project going forward”.

Financial Tags: PMO, RKH.

Top Comments

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  • LEPRecon

    Oh course the Falklands are a safe bet at least compared to their neighbour.

    They're not ruled by self-serving politicians, with an insane bint in charge, threatening to 'nationalise' them and steal their profits.

    Aug 13th, 2012 - 06:16 am 0
  • BritishLion

    I hope things continue to go well with all their ventures. Had Argentina stuck to their past agreements over fishing and stopped bullying the islands, they too 'could have' had a part to play in this. onr reaps what one sews.

    Aug 13th, 2012 - 11:07 am 0
  • Englander

    Absolutely right British Lion, unfortunately the Argentine National Socialists shot themselves in the foot. In time they will get over it mainly because they have no other option.

    Aug 13th, 2012 - 11:46 am 0
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