Argentina threatens oil exploration

The country’s Foreign Minister Hector Timerman said there would be “administrative, civil and criminal” penalties against the companies involved.

He said “the resources of the South Atlantic are the property of all the Argentines”, including any oil found off the shores of the islands they call the Malvinas.

A UK Foreign Office spokeswoman said: “These latest attempts to damage the economic livelihoods of the Falkland Islands people regrettably reflect a pattern of behaviour by the Argentine government.

“From harassing Falklands shipping to threatening the islanders’ air links with Chile, Argentina’s efforts to intimidate the Falklands are illegal, unbecoming and wholly counter-productive. We are studying Argentina’s remarks carefully and will work closely with any company potentially affected to ensure that the practical implications for them are as few as possible.”

Rockhopper Exploration, based in Salisbury, Wiltshire, is the only company so far to strike oil. It has been seeking a $2bn investor to fund crude production from last year’s discovery. A spokesman for the company would not comment.

The FO spokeswoman added: “The British government supports the right of the Falkland Islanders to develop their own natural resources.”