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U.K. mulls more active role in territories

Chilean oil prospects improve
Santiago, Chile (UPI) Nov 18, 2010 - Chilean oil prospects have improved with a new find in the south as the country vies with other Latin American producers to secure a place in the non-OPEC oil producers' club. Chile is a minor oil producer and its proven oil reserves until 2006 didn't exceed 150 million barrels of oil equivalent. The scenario is changing, however, with the government redoubling efforts to prospect for commercial quantities of oil and gas. That endeavor is driven by strategic forecasts of rising oil and gas consumption as the economy bounces back after the 2008 downturn and the effects of an 8.8 magnitude earthquake in February. Chile's need for energy security was accentuated by difficulties with Argentina over natural gas supplies and continued dependence on imports from Brazil and, more worryingly, distant suppliers Angola and Nigeria.

Recent rises in crude oil prices gave new impetus to government-led efforts to encourage the corporate sector to invest more into prospecting and refining. Most of Chile's energy sector is privatized, with Empresa Nacional del Petroleo controlling the bulk of oil production and refining. Officials said Chile could benefit from more investment going into developing its gas sector, with proven natural gas reserves of 3.5 trillion cubic feet.

GeoPark Holdings Ltd., one of the companies active in Chile, said this week it successfully drilled and tested a new well in the Fell block in the extreme south of Chile. The well produced about 1,578 barrels per day of oil, already put on the market. The company has a 100 percent working interest in the block and successfully drilled and tested another well on the Fell Block in September. GeoPark Chief Executive Officer James F. Park said the company was "pleased with continuing strong results from our drilling program on the Fell Block in Chile -- and with our team's demonstrated reliability in both discovering new fields and rehabilitating abandoned fields."

He said GeoPark was looking forward with confidence "to the remainder of our work program this year, which represents a balance of development, appraisal and exploration wells and seismic focused on both increasing oil and gas production and reserves and opening up new prospective areas on the Fell, Otway and Tranquilo blocks." GeoPark supplies one-third of hydrocarbons produced in Chile. It channels its oil output to ENAP and natural gas production to Methanex, a major producer of methanol at Cabo Negro, near Punta Arenas. The strategically situated Methanex plant enables the company to ship methanol by tanker to all its major markets in Asia, South and North America, Europe and South Africa. Chile hopes it can develop its oil industry to a level that will enable it to become self-sufficient and eventually become an oil exporter.
by Staff Writers
Stanley, Falkland Islands (UPI) Nov 18, 2010
The British-ruled Falkland Islands and other overseas U.K. territories in the Atlantic and Caribbean regions will receive more proactive participation by London in their foreign policy and economic development, officials said.

The announcement followed months of agonizing in Whitehall, seat of the British government, on how best to use historical links to protect political and security interests in the vast region.

The problem was brought into sharp focus as Argentina launched an international campaign to discredit British rule in the Falklands, designated as an overseas territory with its own government. Argentina claims Falklands as its own, despite its earlier acknowledgment of British sovereignty after a 74-day conflict that was triggered by an Argentine military assault on the islands in 1982.

The Falklands war resulted in the deaths of 257 British and 649 Argentine military personnel and three civilian Falklanders.

The Argentine defeat in the Falklands discredited the country's military junta and helped restore democratic rule but didn't deter Argentina's politicians from recently reviving claims over the Falklands.

Argentine claims over the Falklands became more persistent after the discovery of potentially large deposits of oil and gas in the North Falkland Basin, South Atlantic waters north of the islands.

British military forces, distracted by conflicts in Afghanistan and Iraq, sent reinforcements and increased naval patrols in the South Atlantic but the bitter row over Argentina highlighted lingering problems with Buenos Aires.

No such crisis exists around Britain's other overseas territories, 13 in all, many in the Caribbean but spread across the world. The Argentine-British dispute, however, raised concerns that international perceptions of the United Kingdom as a global power in decline could spell trouble elsewhere.

A new strategy to reinvigorate the United Kingdom's relationship with its Overseas Territories was unveiled as the annual Overseas Territories Consultative Council met in London.

Called by Foreign Office Minister for the Overseas Territories Henry Bellingham, the meeting brought together territorial heads of government and elected representatives.

Other than defense and security, the talks looked at public finance and governance, criminal justice, transport and the environment.

Analysts said Argentine interventions actually helped supporters of the overseas territories in bringing their cause to the attention of key decision-makers in London.

Bellingham said Britain "wants to develop a new strategy for the Overseas Territories which provides more effective support for their development and better risk management; one that involves, and is agreed by, the whole of U.K. government."

The 14 Overseas Territories are a diverse group. They include the island of Pitcairn in the southern Pacific Ocean, which has 47 inhabitants, and Bermuda in the north Atlantic, a major financial center. The total population of the British overseas territories is around 239,000.

Other U.K. overseas territories include Anguilla, British Virgin Islands, Cayman Islands, Montserrat, St Helena, Ascension Island and Tristan da Cunha, Turks and Caicos Islands and Gibraltar.



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