Falklands drilling plan dropped by Edison International and Noble Energy amid falling oil prices

Controversial oil drilling projects around the disputed Falkland Islands have been halted after a dramatic decline in global oil prices.

Oil exploration companies Falkland Oil and Gas, Noble Energy and Edison International have cancelled plans to drill a second well in the south and east of the region.

The companies said they will continue to operate in other parts of the region and the decision was down to the need for "disciplined capital management in the current oil price environment".

Shares in FOGL jumped 4.3% on opening on 13 April as investors reacted well to the news.

A number of companies have scaled back oil exploration activities across the world in 2015 after crude oil prices fell by more than half at the end of 2014.

Currently trading around $58 a barrel, Brent crude was priced at $115 a barrel in June 2014.

The decline was triggered by falling demand in China and developed economies as well as a global supply glut, spurred by US Crude oil producers boosting production.

Argentina filed criminal charges with the general prosecutor's office against the three energy companies, as well as Rockhopper and Premier Oil, on 9 April. Argentina alleged the companies have carried out exploration activity without permission from Argentina's energy secretariat, according to a foreign ministry statement.

Meanwhile, Noble acquired a 75% interest and operatorship of a licence in the North Falkland basin on 13 April from Argos Resources. Edison obtained the remaining 25%.

Drilling for resources around the Falkland Islands has proved controversial as the UK and Argentina continue to battle over the islands' sovereignty.

The UK said it would beef up its defence of the islands in March amid reports of an increased risk of invasion by Buenos Aires, which claims the islands for itself.