Drillers hesitate in Falkland Islands

Oil and gas exploration company Falkland Oil and Gas (FOGL) announced Monday that they will not be drilling a second oil well in the south and east Falkland Basins.

 

FOGL and its partners US companies Noble Energy and Edison International stated that this decision will not affect the partnership, and they plan to pursue drilling oil in other regions of the Falkland Islands.

 

“We believe that disciplined capital management is crucial in the current oil price environment and this decision leaves FOGL in a stronger financial position,” said FOGL’s chief executive Tim Bushell on Monday.

 

This well was considered to be the most expensive in the basin, according to financial services company Stifel. Oil drillers globally have been searching for ways to reduce costs in light of low oil prices in favour of more immediate returns.

 

With its proven resources in the southern Atlantic, the Falkland Islands are attractive for oil exploration companies.