DURING peak oil production, Navitas expect £181m in corporation tax to be generated per annum, with a further £99m p/a in royalties to be paid to Falkland Islands Government (FIG).
The figures were presented in a public meeting on July 31 by Navitas’ consultations Hatch, who have undertaken work on the social and economic impacts a potential oil industry would have on the Falkland Islands.
On the impact to the economy, speaker Tim Fanning explained that the Sea Lion project would create a number of direct and indirect jobs, with further employment needed to backfill jobs where locals have moved to the oil industry, as well as supporting other services that may increase in size with an influx of new workers such as teachers in schools.
At the peak of production in 2032 around 250 jobs are expected to be created, with this settling to around 170-180 afterwards.
Over the lifetime of the project over £3bn pounds are expected to be raised through corporation tax and royalties, with knock on economic activity occurring as a result of an increase in workers.
It was said that Navitas have identified impacts and mitigation measures for areas they have “care and control” over – the direct impacts from the project – and have not referenced mitigation measures in their report that FIG might adopt.
One of the major impacts to the community would be an increased need for housing. It was explained that Navitas plan to build a 150 bed hotel and houses for at least 40 employees.
The demand on wider housing need was also touched on, that 62 units would be needed over the life of the project, peaking at 84 in 2033.
Covering some of the other key areas it was said there would be a negligible negative impact to electricity supply, Navitas would have their own water tanks at the TDF, and that Navitas have plans to charter their own flights for worker movements to ease congestion on flights. It was accepted however that impacts on flights could be felt due to wider increases in population.
Also presenting some slides at the meeting Head of Policy Roddy Cordeiro explained that the policy unit will be looking at mitigation work that government can implement such as revisiting aspects of the housing strategy, and are currently running a study looking at long term water resilience for example.
It was explained that following regulatory approval and final investment decision – currently expected second half of 2025 – monitoring would be undertaken to reestablish a baseline before any work on the project in Island begins.
This would enable a monitoring programme, run in conjunction with FIG, to be undertaken during the project to measure the social and economic impacts of the project.
It was also said there would be regular reports to FIG as well as a community grievance procedure implemented.