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Geologically, the island of South Georgia consists of a metamorphic basement with some volcanics and a thin sedimentary cover. The 11 South Sandwich Islands are entirely volcanic with some active volcanoes They are the remnants of an island arc, 560 kms southeast of South Georgia.
All the islands probably represent the remnants of an old continent and its margin; extensions of the Andean mountain chain. This geology is unfavourable for oil and gas and South Georgia and the South Sandwich Islands thus have no onshore oil and gas potential.
Offshore however, prospective sedimentary basins could exist in the remote waters of the South Atlantic. But Globalshift considers that the remoteness and harsh climate, as well as problems over disputed ownership, make it very unlikely that commercial production of oil or gas will ever be achieved.
South Georgia and the South Sandwich Islands have no history of production and no exploration wells have ever been drilled on the islands or offshore.
Globalshift does not forecast any future production of oil or gas in the territory.
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