Five British oil companies operating in the Falkland Islands faced legal action yesterday from the Argentine Government as Buenos Aires stepped up its campaign to block “illegal” British drilling in the disputed South Atlantic archipelago.
On Monday, President Fernández de Kirchner declared British oil exploration in the islands to be “illegal and clandestine”, accusing the companies of breaking the law by operating without permission “in the sovereign area of the Argentine nation”.
The Foreign Ministry announced “civil and penal actions, including charges of customs and tax offences, as well as the application of administrative sanctions”.
The move comes amid an intensifying war of words between London and Buenos Aires over the sovereignty of the islands and the drilling activities that Argentina regards as the looting of its natural resources by a colonial power. On June 14, Mrs Kirchner is to attend a meeting of the United Nations Decolonisation Committee to demand negotiations with Britain, the first time a ruling president has made such a presentation to the body.
The British Government accused Argentina of breaking the law with a campaign of harassment against the 3,000 islanders. It pledged to stand by the companies involved in the exploration, which it insisted was “a legitimate commercial venture”.
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“These latest attempts to damage the economic livelihoods of the Falkland Islands people regrettably reflect a pattern of behaviour by the Argentine Government,” the Foreign and Commonwealth Office said.
Argentina’s efforts to “intimidate the Falklands” — including attempts to block shipping and take control of air links with the South American mainland — were “illegal, unbecoming and wholly counter-productive”, the Government said.
Argentina has for months been threatening legal action over the companies involved: Desire Petroleum, Falkland Oil and Gas, Rockhopper Exploration, Borders and Southern Petroleum, and Argos Resources. It said it had given them ten days’ notice to respond before this week’s announcement, but that none had answered.
The Argentine Government said it would inform Britain’s Treasury, the Financial Services Authority, the International Organisation of Securities Commissions and the New York Stock Exchange of the actions.
The details of the proceedings were not immediately clear yesterday though a spokesperson for the Argentine Foreign Ministry told The Times that it was likely the lawsuits would be pursued through both the domestic and international courts.Mrs Kirchner has championed nationalist causes during her four-and-a-half year presidency, striking blows against foreign influence and big business. Argentina says that it acquired the Falklands, which it calls the Malvinas, from Spain in 1816.
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Last month, the European Union launched a suit against Argentina at the World Trade Organisation over “protectionist” import curbs. The move followed the April seizure of the leading Argentine energy company YPF from the Spanish oil giant Repsol.
Ms Kirchner characterised the takeover as a victory for Argentine sovereignty but international critics, led by Spain, branded it a hostile act that would bring only economic isolation.