Desire Petroleum: A History and Overview

Desire Petroleum, once a prominent name in Falkland Islands oil exploration, represents a fascinating chapter in the pursuit of hydrocarbons in a challenging environment. Founded in 1996, the company aimed to unlock the potential oil reserves believed to lie beneath the waters surrounding the Falkland Islands.

The company focused its efforts on acquiring and exploring licenses in the North Falkland Basin, an area considered to hold significant geological promise. Desire Petroleum built a portfolio of exploration prospects and attracted considerable attention, particularly after early seismic surveys revealed encouraging signs of oil-bearing structures.

One of the key projects undertaken by Desire Petroleum was the Liz prospect. Drilling results from the Liz prospect, while initially generating excitement, proved commercially unviable. This outcome served as a significant setback for the company and highlighted the inherent risks associated with frontier exploration.

Despite the setback at Liz, Desire Petroleum continued its exploration efforts, focusing on other prospects within its license areas. The company maintained a belief in the long-term potential of the Falkland Islands and actively sought partners to share the risks and costs associated with further drilling.

Throughout its operations, Desire Petroleum faced numerous challenges, including logistical difficulties related to the remote location, fluctuating oil prices, and geopolitical considerations. The company had to navigate complex regulatory frameworks and manage relationships with various stakeholders, including the Falkland Islands government and potential investors.

In 2011, a significant development occurred when Rockhopper Exploration successfully drilled the Sea Lion discovery, proving the existence of commercially viable oil reserves in the North Falkland Basin. While Desire Petroleum did not directly participate in the Sea Lion discovery, it validated the region’s overall potential and renewed interest in the area.

However, Desire Petroleum never achieved commercial production on its own. In 2014, the company was acquired by another company, Falkland Oil and Gas Limited (FOGL), in an all-share deal. This merger effectively brought Desire Petroleum’s assets under the umbrella of FOGL, which later rebranded as Rockhopper Exploration after acquiring the remaining share of Rockhopper by Premier Oil.

The acquisition marked the end of Desire Petroleum as an independent entity. The company’s legacy, however, remains intertwined with the history of oil exploration in the Falkland Islands. While it did not achieve its ultimate goal of producing oil, Desire Petroleum played a crucial role in demonstrating the region’s geological potential and paving the way for future discoveries. Its story serves as a reminder of the high-risk, high-reward nature of frontier oil exploration and the challenges of bringing resources to production in remote and politically sensitive areas.