MercoPress. South Atlantic News Agency

Repsol-YPF contract UK flagged vessels for Malvinas basin exploration

The 228 metres long Stena DrillMax, with its helicopter pad

Repsol-YPF planned exploration for hydrocarbons in the Malvinas basin, off Tierra del Fuego has suffered a major public relations setback following on the Buenos Aires press revelation that the two vessels contracted for the job not only are UK flagged but also have links with the current oil exploration round in Falkland Islands’ waters.

When a few weeks ago Repsol-YPF announced the coming exploration operations in the Malvinas basin, it came as no surprise for the industry that the Spanish corporation would contract the Stena Drillmax (DWT 96.000 tons), state of the art deep water drilling vessel as it had done off the coast of Brazil.

The catch is that the vessel belongs to to Stena DrillMax an Aberdeen company which is one of the leaders in the industry for this kind of tasks. Similarly the support vessel, Normand Baltic (Isle of Man flagged) (DWT 4.100 tons) belongs to the Norwegian company Solstad Offshore ASA, which is allegedly involved in Falklands’ oil exploration logistics activities.

The two vessels including Stella DrillMax that can operate in waters 3.000 metres deep and in extreme weather conditions, have called in Mar del Plata where the claims first surfaced.

In an article published Sunday in Buenos Aires main daily Clarin, former Congress member Mario Cafiero, who belongs to the Ulises group which specialized in Falklands/Malvinas and Antarctica issues published a column asking President Cristina Fernandez de Kirchner if “this is how we are defending our sovereignty?”.

The quote paraphrases last week’s controversy with Washington over the seizure of the cargo of a US Air Force cargo plane when Mrs. Kirchner during a political rally called on all Argentines to defend the country’s sovereignty.

Cafiero asked how is it possible if the Argentine government alleges it has taken all the necessary maritime controls regarding vessels involved in the current Falkland Islands exploration round that these two vessels flying the red ensign manager to get across.

The Malvinas basin to be explored lies 300 kilometres from Rio Grande, the capital of Tierra del Fuego province and 500 kilometres from Rio Gallegos, the capital of Santa Cruz province.

Last year Repsol-YPF announced that in October it would commence off shore oil exploration in the Malvinas basin at an estimated cost of 150 million USD. The exploration is a joint venture between YPF, the Brazilian company Petrobras and Pan American Energy. The work is part of an exploration plan which will take place over the next five years.

The search is the southernmost venture of its kind and the largest off-shore project Argentina has carried out.

Precisely to discourage oil exploration activities in the Falklands, the administration of Cristina Kirchner has implemented strict navigational procedures for any vessels heading for or sailing from the Falklands.