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Friday, February 19, 2010

Argentina to blockade Falkland waters in dispute over oil rights

Argentina to blockade Falkland waters in dispute over oil rights

Marines walk along a track through a minefield in the Falkland Islands
(Camera Press)
More than 1,000 people were killed before Stanley was reclaimed in 1982
Argentina has declared that it is taking control over all shipping between its coast and the Falklands, in effect awarding itself the power to blockade the disputed islands.
According to a decree issued by President Kirchner last night, all ships sailing through the waters claimed by Argentina must hold a permit. The measure seems likely to deepen a row over conflicting claims to oil beds lying inside the Falkland Islands’ territorial waters.
Argentina still claims sovereignty over the islands it calls “Las Malvinas” nearly three decades after the end of the Falklands conflict in which more than 1,000 people died. Tensions over the islands remained buried until the discovery of potentially rich energy reserves in the Falklands’ seabed. Argentina protested to Britain this month over plans to begin offshore drilling near the islands.
Yesterday’s decree amounts to an Argentine move to control all traffic from South America towards the islands, including an oil rig due to arrive today and start drilling next year.
“Any boat that wants to travel between ports on the Argentine mainland to the Islas Malvinas, South Georgia and the South Sandwich Islands. . . must first ask for permission from the Argentine Government,” Aníbal Fernández, the Cabinet chief, said.
He added that the decree would force all ships bound for the islands or travelling through waters claimed by Argentina to obtain the new permit.
Argentina is trying to prevent British companies exploiting what experts say could be substantial oil reserves. Buenos Aires is enraged by Britain’s refusal to stop explorations in the face of its long-standing sovereignty claim. Last week it detained a ship, the Thor Leader, which it said had been illegally transporting pipes to the Falklands.
The impending arrival of the Ocean Guardian rig has increased tensions, amid reports from waiting crew members on the islands that it had been shadowed by Argentine jets during the final stage of its journey from the Scottish Highlands.
Last week Argentina vowed to take its complaint against Britain to the United Nations. Jorge Taiana, the Foreign Minister, warned that his Government would take “all necessary steps” to defend its claim on the islands, 300 miles from the coastline.
Geological studies estimate that up to 60 billion barrels of oil could be buried in the seabed around the Falklands, making it a reserve on the scale of the North Sea, which has so far produced 40 billion barrels. The majority of the exploration rights have been awarded to London-based Desire Petroleum, which will drill in the area for the first time since Royal Dutch Shell abandoned its bid in 1998.
The islanders have tried to shrug off the prospect of a new conflict. “There has been an economic blockade of the Falklands from Argentina for many years,” Roger Spink, the director of the Falkland Islands Company, said. “It’s something we’ve come to expect.”
Britain has more than 1,000 military personnel on land and more than 300 at sea around the Falklands, as well as four Typhoon jets, a destroyer and a patrol boat.

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