BHP Billiton begins drilling off Falkland Islands
Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, June 4 -- BHP Billiton and partner Falkland Oil & Gas Ltd. (FOGL) have spudded their first exploration well, Toroa F61/5-1, off the Falkland Islands. The companies are targeting what they estimate to be a 1.7-billion bbl prospect.
Toroa F61/5-1 began drilling on May 31 and will take 35 days to reach its target depth of some 2,700 m. Toroa lies in license PL15, in which BHP Billiton, operator, has a 51% stake. FOGL holds the remainder.
In 2007, BHP Billiton announced that it acquired an interest in 14 exploration and production licenses off the Falkland Islands in the South Atlantic.
The firm said it signed contracts with FOGL for rights to explore and produce oil and gas from the East Falkland Basin located off the southern and eastern coast of the Falkland Islands.
The production licenses, which cover 18 million acres, lie in 200-2,000 m of water.
Last month, Rockhopper Exploration PLC ran liner and suspended for later tests its 14/10-2 well on the Sea Lion prospect, saying it could be the first oil discovery in the North Falkland basin in the South Atlantic (OGJ, May 19, 2010).
Drilling in the Falkland Islands region is considered controversial due to competing claims made by Britain and Argentina over sovereignty. The two countries fought a war over the Islands in the 1980’s, with Britain the victor.
Argentina still disputes the outcome, and Britain last month rejected an overture from Argentina's President Cristina Fernandez de Kirchner to hand back the territory.
“We have no doubt about our sovereignty over the Falkland Islands,” Britain’s Foreign Office responded. “The principle of self-determination as set out in the UN charter applies.”
Contact Eric Watkins at [email protected].