Falklands oil explorers shelve new drilling plans, easing tension with ArgentinaComments Off on Falklands oil explorers shelve new drilling plans, easing tension with Argentina
The oil companies Noble Energy, Falkland Oil & Gas and Edison International said they were ditching their proposed second well in the southern Falkland basin following the steep drop in prices since the summer.
Although the trio said they would continue drilling in other parts of the region, today’s decision is expected to ease tensions a week after the Argentine government took legal action against three British and two American companies for “carrying out exploration activities for fossil fuels on the Argentine continental shelf without obtaining corresponding authorisation”.
Noble, Falkland Oil & Gas and Edison were among the companies involved in the legal action.
The oil price has fallen from $115 a barrel last summer to around $59.21 today as a surge in US shale production has pushed supply into surplus.