Falklands oil 'unprofitable'

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The Independent Online

Oil resources in the Falkland Islands are insufficient to be profitable, an ExxonMobil executive said, according to a cable from the US embassy in London published by WikiLeaks.

The memo, dated February 2010, was about a drilling effort then starting in the Falklands and a perceived rise in tension between the UK and Argentina. "ExxonMobil International chairman Brad Corson told us he does not believe there is enough oil on the Falkland Islands continental shelf to be profitable, citing Shell's earlier oil exploration attempts which they abandoned," the cable read.

ExxonMobil said the company does not comment on "media reports, speculation or classified documents".

A clutch of small oil explorers resumed drilling off the Falklands earlier this year after a 10-year break.