The government of Argentina will take legal action against Premier Oil after the British company announced that it would begin oil exploration activities off the disputed coast of the Falkland Islands.
Premier Oil has reportedly partnered with Rockhopper, another British oil company, and is expected to provide $USD 770 million to help build infrastructure that will enable the extraction of unknown quantities of oil and gas in the Sea Lion oil field.
The deposit is said to contain between 608 and 1280 million barrels of crude oil.
According to Terra News, the Embassy of Argentina in London sent a letter to Premier Oil stating that “oil exploration activities undertaken by the firm Rockhopper Exploration PLC on the continental shelf in Argentina are illegal, and Argentina has initiated the appropriate legal action.”
Argentina claims that other companies such as Argos Resources, Falkland Oil and Gas Limited (FOGL), Borders & Southern Petroleum and Desire Petroleum are also involved in ¨illicit¨ hydrocarbons activities and has taken similar legal measures.
Although Britain won the 1982 war fought over the Falkland Islands, Argentina still claims sovereignty over the territory. In June, Britain announced that it would be holding a referendum on the island´s political status.