The Falkland Islands Government has released a new guidance note covering changes to licensing policy for offshore Production Licences. Taking into account the current worldwide difficulties that are being faced by the oil industry, Executive Council recently considered and approved a package of measures to support current Production Licence holders who hold interests in the Falkland Islands.
Over the last six years, the oil and gas industry has invested almost two billion dollars in offshore exploration and data acquisition around the Falkland Islands, discovering several potentially commercial hydrocarbon resources with potentially in excess of 1 billion barrels of recoverable crude oil and gas condensate. The sustained activity throughout this period has delivered significant benefits to the Falkland Islands economy, and private sector businesses have also made significant investments to allow them to participate in the supply chain.
The new measures address the short-term impact of the current oil price environment and put in place a framework that will allow licensees to progress both development of discovered resources, and new exploration work, and to achieve the first successful commercial oil production in the Falkland Islands.
Please visit our Downloads page and scroll to the Guidance Notes section for the new version.