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Noble Energy says Falklands’ oil production in six years if exploration well proves successful

Friday, October 12th 2012 - 16:44 UTC
Full article 18 comments
Susan Cunningham, senior vice president for exploration Susan Cunningham, senior vice president for exploration

Noble Energy Inc. (NBL) executives said on Thursday that oil production in the Falkland Islands could begin in about six years if an exploration well proves to be successful.

Susan Cunningham, senior vice president for exploration, said during a conference call that drilling began on an exploration well in the region late last month, the first that Noble has participated in there under the farm-in agreement it entered with Falkland Oil & Gas Ltd. (FOGL.LN) in August.

If that well results in an oil discovery, Ms. Cunningham said the first production could come by 2018 or early 2019.

Under its agreement, Noble has a 35% operating interest in most of FOGL licenses and agreed to spend 180 million to 230 million dollars on exploration over the next three years. Executives said on the conference call that the Falklands’ venture has the potential to be a “game-changer” for Noble, and that initial results from the well are expected by the end of the year.

Oil exploration in the Falklands has been hindered by sovereignty disputes. Though the archipelago is a British Overseas Territory, Argentina hasn't given up its claim to the Islands. But Ms. Cunningham didn't mention geopolitical risk as a problem for the company.

“We believe that the Falkland Islands is an area where above-ground risk is very manageable,” she said. ”The regulatory environment is sophisticated and stable, and the financial terms are attractive”.

Financial Tags: FOGL, NBL.

Top Comments

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  • KretinaKK

    VATAYON MILITANTE - The Argentine government under Cristina Fernandez de Kircher and The Argentine National penitentiary service, takes inmates out of jail without judicial permission, to attend and participate in political events of Kirchner. The prisoners are paid an “allowance” of $2700 per month for joining this political group. The creation of this Vatayon militante group which are CONVICTED AND INCARCERATED for everything from murderer to armed robbery is becoming the Kirchner government's militant force of the future. If things get rough for Cristina, these prisoners have nothing to lose for defending the Kirchner movement with violence. They also have access to guns and drugs, and prostitues all courtesy of the Kirchner government. The prisoners who are chosen attend these events, is left up to the to the head of the Argentine National Penitentiary Service, Victor Hortel who is a very close ally of Cristina's government He is a former prisoner himself and has very close ties with prison gangs, and has been known to release prisoners at night to go out to steal and even kill, in exchange for drugs, sex and money. Rewarding criminals and prisoners for political purposes, violating all sorts of rules and laws, is proof of the form of government that Argentina is living with and will only get worse in the months and years ahead, especially if Cristina moved forward with her proposal to change the Argentine constitution to allow for her re-re-election for an unlimited amount of presidential terms.

    Oct 12th, 2012 - 04:52 pm 0
  • Monkeymagic

    Very quiet on here LOL.

    So a large US oil company isn't worried by the Argentine noise....hahahahahahaha

    Oct 12th, 2012 - 05:36 pm 0
  • Pugol-H

    Things do seem to be moving faster now with the hydrocarbons.

    Argentina’s objections are being ignored, no way for CFK & Co to hide that fact.

    Escalation is the probable response, even then difficult to see how without them doing something really stupid, that gets people killed.

    Oct 12th, 2012 - 05:50 pm 0
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