Harbour Energy, Rockhopper Exploration and Navitas Petroleum have signed a heads of terms agreement for the Sea Lion field, paving the way for Harbour’s exit of the Falklands and for Navitas to complete its farm-in.
Harbour Energy is facing sanctions from Argentina over an oil and gas project in contested waters off the Falklands.
A planned farm-out of the Premier Oil Sea Lion project in the Falklands has gone into extra time due to the firm's mega-merger with Chrysaor.
American spy chiefs proposed striking a 50/50 oil deal with Argentina just weeks before a war that claimed the lives of more than 900 people.
The UK has played down reports that a United Nations commission has ruled that Argentina’s territorial waters should be extended to include the Falkland Islands.
Despite current low oil prices, the oil and gas industry in the Falkland Islands is continuing to go from strength to strength as its first project, Premier Oil’s Sea Lion, moves closer to commercialisation, according to an analyst with research and consulting firm GlobalData.
Falkland Oil and Gas Limited, the exploration company focused on the South Atlantic, has said efforts to resolve equipment issues on its Humpback well took longer than expected and resulted in a revised drilling programme.
Any attempt by Argentina to seize the assets of oil drillers operating in the disputed Falkands will have no basis in law, the UK Government has said.