MercoPress. South Atlantic News Agency

PM Cameron Reaffirms Falklands’ Sovereignty and Supports Local Oil Industry

Cameron has no doubts the Falklands Islands Government is entitled to develop a hydrocarbons industry

London reaffirmed British sovereignty over the Falkland Islands rejecting a call Friday from Argentine President Cristina Kirchner to new Prime Minister David Cameron to halt all oil exploration in the waters around the Falklands.

A Foreign Office spokeswoman said: “We have no doubt about our sovereignty over the Falkland Islands and the surrounding maritime areas. The Falklands Islands Government is entitled to develop a hydrocarbons industry within its waters and it is longstanding UK government policy to support this.”

Cristina Fernández de Kirchner called on Cameron to stop the oil exploration around the Islands in the South Atlantic “in favour of fruitful cooperation with my country.”

According to the Argentine government, Mrs. Kirchner sent a letter to PM Cameron upon his appointment this week, wishing him success and reaffirming her government's willingness to resume negotiations on the Falklands' sovereignty.

“Recently, unilateral oil exploration activities have begun in the disputed area, which has been rejected by my government, and I hope it will be possible for you to stop these operations in favour of fruitful cooperation with my country,” Mrs. Kirchner wrote in a note released Friday. The existence of the letter had not been made public by the new British government.

Argentina was outraged when an oil exploration round began in the Falkland Islands waters in late February. Tensions rose further on May 6 when British firm Rockhopper Exploration announced a first discovery of crude oil in a well off the islands.

Three other British oil companies are involved in the at least six month exploration round with the “Ocean Guardian” rig: Desire Petroleum (LON:DES), Borders & Southern Petroleum (LON:BOR) and Falkland Oil and Gas (LON:FOGL) in association with BHP Billiton (LON:BLT). All companies are operating with licences awarded by the government of the Falkland Islands.

Rockhopper Exploration (LON:RKH) confirmed the “discovery of oil” in the North Falkland basin at Sea Lion prospect after drilling a well of 2.744 metres.