Falkland drilling not deterred by Argentina threats

Fuel Fix:

Noble Energy announced Monday that it has scooped up additional acres offshore the Falkland Islands and plans to start drilling there this year despite opposition from Argentina’s government.

The Houston-based oil company acquired a 75 percent interest in a license in the North Falkland Basin from Argos Resources Limited, an oil and gas exploration company based in the Falkland Islands. Noble will also be the operator. Italy-based Edison International acquired the remaining 25 percent.

The license covers nearly 285,000 acres and includes the Rhea prospect, which could contain more than 250 million barrels of oil equivalent, the company said.

Noble and Edison agreed to pay Argos a 5 percent royalty on any future production in the block.

Despite slashing its budget by 40 percent this year and paring back spending in U.S. shale plays and the Gulf of Mexico, Noble retained funding to pay for drilling two exploratory wells off the coast of the Falkland Islands, which are located east of Argentina.

“The Rhea prospect diversifies our prospect inventory and upgrades our chance of overall success, without changing our total capital program for the year,” Susan M. Cunningham, executive vice president of exploration and new ventures said in a statement. “This opportunity is in a proven petroleum system and is a strong complement to the vast number of remaining prospects on our acreage.”
...

Argentina's government is like a thief who sees someone else's property as its own.  No Argentians actually live on the Falklands or own property on them.  The oil prospects will boost the economy of the islanders and the Brits.