MercoPress. South Atlantic News Agency

Falklands entitled to develop a petroleum industry, says FCO

The Falkland Islands government is entitled to develop a hydrocarbons industry underlined the United Kingdom after reaffirming its sovereignty over the South Atlantic Islands following a formal protest from Argentina regarding a “new oil exploration licensing round”.

"The United Kingdom has no doubts about sovereignty of the Falkland Islands and the surrounding maritime areas" said a British Embassy spokesman in Buenos Aires. "The Falkland Islands government is entitled to develop a hydrocarbons industry". Late Wednesday and as had been anticipated by some Buenos Aires media close to the Kirchner administration, Argentina presented an "energetic" letter of protest to the UK Embassy regarding the "new round of licensing" and the announcement by several companies of oil drilling operations in Falklands waters in the near future. "Argentina energetically rejects these unilateral measures which constitute an illicit act, both for Argentine Law and International Law", said the letter delivered to Deputy Head of Mission Andrew Jackson at the UK embassy in Buenos Aires. Allegedly the "new licensing round" for the exploration in the north of the Falklands was decided last April 18 but it only became known to the Argentine government this week. The decision means exploration areas awarded to oil companies in 2005 have been expanded, which was the reason behind the Kirchner administration March 2007 decision to terminate the September 1995 Joint Argentine British Declaration on hydrocarbons cooperation, signed under the government of former president Carlos Menem. According to the official release the Argentine Foreign Affairs claims the UK has abrogated upon itself "the right to award areas on the Argentine continental shelf north of the Malvinas Islands for hydrocarbons' activities" which is contrary to a long list of United Nations General Assembly resolutions. The UN resolutions call on Argentina and UK to resume sovereignty negotiations for a peaceful solution to the dispute but one in particular, Resolution 31/49 calls on both sides to abstain from adopting decisions which "introduce unilateral modifications to the situation while the Islands are going through the process of bilateral negotiation". Regarding Rockhopper Exploration, and other British companies, (presumably Desire Petroleum), recent announcements that they are operating to the north of the Malvinas Islands, "Argentina reiterates once again that the activities of that company in particular, as well as another involved, have been formally protested to the United Kingdom since 2005". The release reveals that the rejection mechanism for such activities not only involves formal protests to the UK but also "discouragement letters to the companies warning them that because of their illicit actions they are liable to legal sanctions". Similarly "any company which directly or indirectly is commercially linked to the companies illegally authorized by the UK has received identical warning". Such is the case of the French ""Compagnie Générale de Géophysique" and its Houston branch which were notified by Argentina in 2007 and 2006 when it became public they had been contracted by Rockhopper Exploration for "seismic surveying in the North Malvinas basin". Finally the release recalls that on 29 March 2007, the Energy Secretary adopted Resolution 407/2007 "to perfect the mechanisms which the Argentine government has to dissuade, and if necessary, sanction illegal hydrocarbons activities in the Argentine continental shelf".