Argentina Takes Aim At Falklands Oil Firms

Last Updated 10:43 16/03/2012
Argentina has threatened to take legal action against companies involved in oil drilling around the Falklands, increasing further tensions with the UK over the disputed islands.
Argentina's foreign minister Hector Timerman said there would be "administrative, civil and criminal" penalties against the companies involved.

He said "the resources of the South Atlantic are the property of all the Argentines", including any oil found off the shores of the islands they call the Malvinas, which have been controlled by Britain since 1833.

The UK Foreign Office described the move as "wholly counter-productive" and said the 3,000 Falkland islanders had every right to develop the oil industry in their own waters.

A Foreign Office spokeswoman said: "These latest attempts to damage the economic livelihoods of the Falkland Islands people regrettably reflect a pattern of behaviour by the Argentine government.

"From harassing Falklands shipping to threatening the islanders' air links with Chile, Argentina's efforts to intimidate the Falklands are illegal, unbecoming and wholly counter-productive.

"We are studying Argentina's remarks carefully and will work closely with any company potentially affected to ensure that the practical implications for them are as few as possible."

Rockhopper Exploration, based in Salisbury, Wiltshire, is the only company so far to strike oil. It has been seeking a $2bn investor to fund crude production from last year's discovery.

A spokesman for the company said it would not be commenting on the matter.

Prime Minister David Cameron said in New York that he had discussed the conflict with US President Barack Obama and that America clearly supports the status quo.

"I wanted to stress how important it is for Britain to set out how clearly we support the right of the Falkland Islanders to determine their own future. They want to remain with us and that is very clear," Mr Cameron said, as he wrapped up a three-day visit to the US.

"To me it is very important that we stick up for the right of self-determination," he added.

As the 30th anniversary of the 1982 war approaches on April 2, Mr Cameron said he wants to send "a very clear signal to the rest of the world - Argentina and others - that while the Falkland Islanders want that status, Britain will help them keep that status".