Argentina urges oil firms to stop oil & gas activities in the Falklands
Argentina has urged oil companies to stop activities related to offshore oil and gas exploration and production in the disputed areas near the Falkland Islands.
In a statement issued last week, the Argentine foreign ministry said three oil companies – Rockhopper, Premier Oil, and Argos Resources – were carrying out oil and gas activities on the continental shelf near the Falkland Islands – without the authorisation of the Argentine government.
Argentina and the UK in 1982 fought a brief but deadly – around 1000 dead – war after the Argentine forces invaded and occupied the Falkland Islands. The war lasted between the 2nd April and the 14th June 1982, with the UK eventually seizing back the control.
Argos’ acreage
Argos Resources – the third company mentioned by the Argentine foreign ministry – holds a 100% interest in Licence PL001. The licence covers approximately 1,126 square kilometres in the North Falkland Basin. Its boundary is located three kilometres from the Sea Lion oil field.
Argos was reassigned a 100 percent ownership over the block in February 2019, following a decision by Edison and Noble Energy in 2018 to relinquish their stakes in the offshore licence.
The two companies had farmed into the licence back in April 2015, with Noble Energy taking 75 percent and Edison taking the remaining 25 percent. Argos was to retain an overriding royalty interest of 5% of gross revenues from all hydrocarbon discoveries developed within the licence.
Also, under the terms of the farm-in agreement, Argos had been receiving quarterly cash payments totalling £300,000 per year.
In September Argos said it continued to receive quarterly cash payments from Noble and Edison of £75,000 per quarter, for a period of 450 days after the notice to withdraw, until the 27th December 2019.
The current second phase of the licence expires in November 2019 and Argos is in talks with the Falkland Islands Government over the potential extension.
The company has also said it will seek to secure other partners to participate in the development of its PL001 licence.
Source: Offshore Energy Today