Predictably enough, tensions between Argentina and the UK again are on the rise after Rockhopper Exploration PLC last week said further tests indicate the oil it discovered near the Falkland Islands can be commercially exploited.
"We are extremely excited by the results of this well," said Samuel Moody, Rockhopper managing director. "While we are presently acquiring additional data, current indications are that we have made the first oil discovery in the North Falkland basin," he said.
Rockhopper said preliminary tests indicate the oil found with the Sea Lion prospect off the Falklands can be moved. Further testing is planned.
Not surprisingly, Rockhopper's find has reignited the long-smoldering row between the UK and Argentina over the islands, which they fought a war over in the 1980s.
The United Nations General Assembly called for the two countries to negotiate sovereignty over the islands following that war, which Britain won. But London consistently rules out any concessions involving the islands, while Buenos Aires still claims sovereignty over them.
'Illegal takeover'
Argentine President Cristina Kirchner has said the UK's oil-drilling operation violates international laws as well as UN resolutions asking that neither side take unilateral actions that could worsen the situation.
Argentina's Foreign Ministry also has rejected what it calls "an illegal takeover of unrenewable natural resources that are the property of the Argentine people."
The ministry said it would "continue denouncing in all international forums this illegal British action, taking necessary measures that comply with international law to keep these illegal actions from happening."
Argentina has had one small diplomatic success in that regard. After learning of British oil prospecting off the islands, Kirchner obtained a strong condemnation and recognition of Argentina's sovereign rights in February during the Latin American & Caribbean Summit in Cancun.
The next international forum is the Latin America-Caribbean-European Union Summit, happening this week in Madrid. Argentina is expected to raise its voice once again.
Treaty of Lisbon
But Kirchner won't be as lucky in Madrid as she was in Cancun. Her main problem is the Treaty of Lisbon, signed by 27 EU member states on Dec. 13, 2007.
Annex Two of that document lists countries and overseas territories now considered to be part of the EU, including the Falkland Islands, South Georgia, the South Sandwich Islands, and the UK's Antarctic territory.
It will be tough for the Argentineans to make headway in a Europe that has already decided who the Falklands belong to.
"This [discovery] will only add fuel to the fire of Argentine claims," said Alan Mendoza of the Henry Jackson Society. "Argentina will say they have rights to the Falklands whether or not there is oil there."
According to Mendoza, Rockhopper's discovery "will likely lead to further confrontations."
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