UK firms look set to ignore fresh threats of legal action from Argentina a proceed with plans to drill for oil in the Falklands.
Premier Oil has announced plans for a fresh wave of activity on the contested islands.
The firm said last night that it had contracted the rig to drill a minimum of four wells in the North Falkland Basin with partner Rockhopper.
It is sharing the rig with Noble Energy, which will deploy the equipment to drill another two wells elsewhere in the Falklands.
Falkland Oil and Gas also said it was participating in the 2015 drilling programme with Premier Oil and Noble Energy.
Tensions between Britain and Argentina remain high over the sovereignty of the South Atlantic archipelago as Argentina attempts to block London-listed firms from drilling for oil and gas in the area.
Argentina has passed a law establishing criminal sanctions 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 claim to the Falklands – a self-governing overseas British territory.
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.
And President Cristina de Kirchner has made clear her desire for sovereignty over the islands.
She has threatened to punish oil firms operating off the Falklands with heavy fines, the seizure of assets and jail sentences of up to 15 years.
But the Foreign and Commonwealth Office (FCO) has accused Buenos Aires of “bullying tactics” in the long-running dispute.
The new rig, which is expected to arrive in the Falklands between February and May next year will first drill at the Premier Oil-operated Zebedee and Isobel/Elaine prospects in the North Falkland Basin.
Noble Energy has got the third and fourth drilling slots through a rig-sharing agreement with Premier Oil before the equipment is expected to return to the North Falklands to drill another two wells.
These are likely to be the Jayne East and Chatham/Sea Lion West Flank wells, Rockhopper said.
Premier Oil has been searching for a partner for its Sea Lion project, a field that is expected to start producing oil in late 2018 and will require an estimated £3.1billion in investment.
Premier Oil also said on Wednesday it had discovered more gas at its Tuna Block in offshore Indonesia, increasing the site’s gross resource estimate to 100 million barrels of oil equivalent.
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