Falklands : LIBRA 12bn BARREL POTENTIAL: BRASIL TAKES TWO STEPS BACK
Submitted by Falkland Islands News Network (Juanita Brock) 26.10.2013 (Article Archived on 23.11.2013)
At 1500 sq km Brasil’s Libra discovery could be key to that country’s hopes of becoming a major oil producer.
LIBRA 12bn BARREL POTENTIAL: BRASIL TAKES TWO
Editorial by J. Brock (FINN)
At 1500 sq km Brasil’s Libra
discovery could be key to that country’s hopes of becoming a major oil
producer. Over the weekend the UK press
speculated about the huge discovery approximately 100km NE of Rio. However, things aren’t rosy in that the
National Oil Company, Petrobras not only dropped $200BN in value since 2009 but
also Moody’s Rating Agency may still downgrade the Company, thwarting
investors. Brasil also has put stringent
restrictions on oil companies purchasing licences for the Libra Prospect.
Nonetheless these mitigating
factors make the Falklands Oil Regime less vulnerable than the UK press
speculated. Falklands’ prospects remain
attractive even though huger prospects have been exploited to the West and
North. No doubt the Libra tract is huge
but the Falklands have a more value for money Oil Regime. But there are other countries in the region
with more dire straits. PDVSA Ships
Seized over $70 Million in Unpaid Bills.
Venezuela’s state oil company Petroleos de Venezuela (PDVSA) was forced
to pay $70 million into a London court after its ships were arrested over
unpaid ship charters
As long as South American National
Oil Companies hold a tight rein on licensees and continue to spend more money
than they take in, the Falklands are in with a chance to give our licensees
value for money. This is despite the 8%
of the world’s reserves the whole region holds.
Perhaps we should consider it our
good fortune that the Falklands tax regime has the option of offering value for
money. Prudent analysis and evaluation
of what our Western and Northern neighbours are
doing will help keep the Falklands’ oil industry from falling into the
same financial traps that have strapped the others for cash while they sit on
more hydrocarbons resources than we do.