Argentina has passed a law establishing criminal sanctions, including huge fines and jail sentences of up to 15 years, for anyone it says is involved in the illegal exploration and exploitation of oil in its waters.
It is the latest salvo in the country’s battle to draw international attention to its case for the UK-owned Falklands coming under its rule.
Argentina has previously asked stock markets in New York and London to warn investors of its claim that UK-listed oil firms were working illegally off the Falklands, which it calls Las Malvinas.
Announcing the new sanctions yesterday, Argentina’s embassy in London said: “The law provides for prison sentences for the duration of up to 15 years; fines equivalent to the value of 1.5million barrels of oil; the banning of individuals and companies from operating in Argentina; and the confiscation of equipment and hydrocarbons illegally extracted.”
At current prices, the threatened fines could mean offenders having to pay up to £138million.
Firms involved in exploration near the Falklands include Premier Oil, Argos Resources, Desire Petroleum, Falkland Oil and Gas, Rockhopper Exploration and Borders and Southern Petroleum.
The official line from companies contacted by the Press and Journal about Argentina’s latest move was “no comment”.
But one spokesman said: “We don’t really pay much attention to the noise that comes out of Buenos Aires.”
Another said the new law was an “irrelevance” to UK firms as there were none with exploration licences for Argentine waters.
A Foreign Office spokesman said: “Hydrocarbons activities by any company operating on the continental shelf of the Falkland Islands are regulated by legislation of the Falkland Islands Government, in strict accordance with the United Nations Convention of the Law of the Sea.
“As such these activities are wholly legitimate and legal.
“The UK Government unequivocally supports the right of the Falkland Islanders to develop their natural resources for their own economic benefit.
“This right is an integral part of their right of self-determination, which is expressly contained in the International Covenant on Civil and Political Rights.
“Argentine domestic law does not apply to the Falkland Islands or South Georgia and the South Sandwich Islands, which are UK overseas territories.”
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