British firm starts oil drilling in Falkland Islands waters

London - A British rig Monday started drilling for oil in the territorial waters of the Falklands Islands in the South Atlantic - despite the prospect of an escalating diplomatic row with Argentina. Argentina, which fought a war with Britain over the islands' sovereignty in 1982, has warned that the move violated its sovereignty and started to impose shipping restrictions around its shores.

Desire Petroleum, the company charged with the exploration, confirmed Monday that operations had started on a platform towed to a point some 100 kilometres north of the Falkland Islands.

"Drilling operations are expected to take approximately 30 days and a further announcement will be made once drilling is completed," the company said in a statement to the London Stock Exchange.

"Desire is an oil company and it's exploring for oil and not getting involved in what Argentina is saying ... The rig is sitting firmly in UK waters," the company said.

Argentina has long claimed the islands, which it calls the Malvinas. According to estimates, the Falklands have a total of 60 billion barrels of oil.

In London, Bill Rammell, a junior defence minister, reiterated that the British government would take "whatever steps are necessary" to protect the Falkland Islands - a pledge already made earlier by Prime Minister Gordon Brown.

Rammell said the Falkland Islands had a "legitimate right" to develop an oil industry within its waters.

"We do, we have, and we will take whatever steps are necessary to protect the Falkland Islands and our counterparts in Argentina are aware of that," said Rammell.

Source: Earth Times.
Link: http://www.earthtimes.org/articles/show/310660,british-firm-starts-oil-drilling-in-falkland-islands-waters.html.