Monday, February 22, 2010

Falkland Islands

Thee Falklands war is the first war that i really absorbed as a teenager 28 years ago. However i never really understood what it was all about..until today.

BBC reports
A British rig is due to begin drilling for oil in the territorial waters of the Falkland Islands, despite strong opposition from Argentina.

The platform has been towed to a point 100km (62 miles) north of the islands in the South Atlantic.Argentina says the move violates its sovereignty and has imposed shipping restrictions around the islands.

It is estimated the Falklands have the equivalent of 60 billion barrels of oil in total.
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When did they discover oil?
In 1998, six wells were drilled to the north of the Falkland Islands - an area about half the size of Texas.With crude oil dropping as low as $10.35 a barrel that year, it was decided it was not commercially viable to drill the wells.

Now, with oil above $75 a barrel, there is a lot more interest to find out just how much oil is there.A number of oil companies have exploration rights now. British oil firm Desire Petroleum hold the exploration rights to that area now.The territory - which has fewer than 3,000 people - also started gold and minerals exploration in 2004.