San Francisco: Falkland Oil and Gas, along with its partners, has decided to shelve plans for drilling a second well in the South and East Falkland basin.
Instead the company and its partners, Noble Energy and Edison International, have decided to concentrate their efforts on the North Falklands Basin.
The decision is strictly down to economics, say the companies, citing oil-price volatility. By delaying the drilling they anticipate “lower costs in the future”.
There had been some political background noise to the recent discovery of oil offshore Falklands, with Argentine authorities – who still maintain a sovereignty claim over the islands, which are British Overseas Territory – threatening to sue British exploration companies.
Falkland Oil and Gas said it remained committed to resuming exploration to the south of the islands.
Worldwide many companies in the oil exploration business have been reassessing their investment plans.