Falkland Islands willing to collaborate on oil sector

… as UK reaffirms sovereignty claims

BY SHEMUEL FANFAIR

Similar to Guyana, the Falkland Islands is expected to start oil production in 2020 but the small South American island chain continues to face claims by neighbouring Argentina. However, as the territory makes strides on entering the industry, it stated that it is willing to compare technical knowledge with Guyana. Ahead of the oil production in its South American territory, the United Kingdom reaffirmed its sovereignty over the Falkland Islands.

At the British High Commissioner’s residence on Wednesday, media operatives were updated on the ongoing border controversy where member of the Falkland Islands Legislative Assembly, Ian Hansen, highlighted the challenges the territory is facing with Argentina ahead of capitalising on its offshore oil reserves.
“From our point of view, [Argentina] is aggressive. It’s aggressive to make an economic blockade, to stop flights coming in; it’s aggressive to stymy the tourist industry by stopping cruise ships coming in and its aggressive to go on social media and say that the people of the Falkland Islands are implanted,” Hansen noted.
He added that he is a sixth generation islander, noting that there up to ninth generation inhabitants. Hansen later said Falkland is willing to collaborate with Guyana, as both territories are moving to produce oil in the near future. Some countries Falkland collaborated with on oil production include Shetland Islands and Norway. He stressed the importance of perspective oil producing nations not making the same mistakes as some of the other countries made in the past.
“Some countries have made good progress and other countries have made massive mistakes so we are hoping to learn from them… we are both at this level where we are possibly exporting oil in 2020 and I think it would be very advantageous for both of us to compare notes to see where we are and if somebody has missed something,” the Falkland Islands Legislative Assembly stressed.

Preparatory measures
Aside from visiting oil producing countries, the territory has also undertaken other preparatory measures, including ensuring there is a Sovereign Wealth Fund akin to the Norway model. Hansen also stated that the territory has been updating its laws over the last five years to have it tailored to facilitate the sector, in addition to assessing the possible impact the industry could have on its oceanic environment.
Meanwhile, UK Ambassador to Guyana, Greg Quinn, spoke on the similarities between Falkland and Guyana, saying that the two countries can share their experience of entering the oil sector at the same time.
“It’s a small find of about three hundred million barrels as opposed to the billions of barrels that have been mentioned [in Guyana] but because both countries find themselves in a similar situation at a similar time, we thought it would be good for Ian [Hansen] to pass on the Falkland Islands’ experience of dealing with oil for the first time,” he noted.
Under the Margret Thatcher reign, Britain went to war with Argentina over the Falkland Islands in 1982. Argentina’s claim is based on historical records dating back to 1929.
However, in 2013, 99.8 per cent of Falkland Islanders voted to remain as an overseas territory of the United Kingdom. The future oil-producing territory has a population of 3400.
Guyana’s Government faced criticism over the issue of transparency with respect to the emerging oil and gas sector by Control Risks Senior Analyst Raul Gallegos.
Gallegos who had addressed an audience in California at the XXVI La Jolla Energy Conference explained to a gathering of investors, thought leaders and Government officials that the problem with Guyana was the issue of transparency.
Guyana is all set to become a top oil-producing country following massive finds by a major international oil companies.