Falkland Oil and Gas (FOGL) cancels plans for second oil well

Falkland Oil and Gas (FOGL), together with Noble Energy and Edison International have scrapped plans to drill a second oil well in the south and east Falkland basin.

The partners will continue drilling in other areas around the Falkland Islands, FOGL said in a statement, adding that scaling back on the drilling work would not impact any other existing agreements between the partners.

“We believe that disciplined capital management is crucial in the current oil price environment and this decision leaves FOGL in a stronger financial position,” said FOGL Chief Executive Tim Bushell.

Last week, Argentina ramped up political pressure on British-listed companies drilling for oil in the Falklands by threatening to take legal action.