Falklands has 'huge oil potential of 4.7bn barrels'

Drilling for oil in the Falklands is a risky business but the potential rewards could be enormous, says a new report.

A group of UK-listed companies is involved in exploring four major sites this year, with the largest potentially holding more than 4.7 billion barrels of oil.

Another company called Rockhopper is currently drilling one field which on its own could yield tax revenues and royalties for the tiny Falklands government of nearly £6bn.

That figure could rise to more than £110bn if all the fields start gushing oil.

However, Ian McLelland, a director at Edison Investment Research who published the report says "there is political risk when operating in that area".

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