UK tells Argentina to stop 'bullying' Falkland Islands over oil drilling as row escalates

Last month the Argentina Congress passed a law threatening to punish oil firms operating off the Falkland Islands with heavy fines, the seizure of assets and jail sentences of up to 15 years.

The Foreign Office insists the Falklands are not subject to the law as Argentina does not have sovereignty over the islands.

Today, Foreign Office director for the Americas, Kate Smith, lodged a formal protest with the Argentine charge d'affaires, Oscar Horacio Galli.

An Foreign Office spokesman said: "Argentine domestic law does not apply to the Falkland Islands, so this is a baseless gesture intended to deter legitimate commercial activity. We are confident it will not succeed.

"It is shameful that Argentina is once again adopting bullying tactics in an attempt to strangle the Falkland Islands economy.

"The British Government fully supports the rights of the Falkland Islanders to develop their hydrocarbons sector for their 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.

"All hydrocarbons activities 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."

Oil firms are prospecting in the seas around the islands.

Premier Oil is expected to start taking its first oil from the Sea Lion field in 2018.

The field is thought to have 394 million barrels of oil, making it bigger than most current North Sea oilfields.

After the controversial Argentinian law was passed, the director of Mineral Resources for the Falkland Islands Government, Stephen Luxton, said it would have no impact.

He said: “The Argentine Government’s domestic legislation has no force in the Falklands. They have no jurisdiction over activities here.

“Our right of self-determination, recognised by the UN, includes our right to explore for and exploit offshore resources such as fish and hydrocarbons.

“I do not think this law will have any effect at all on the companies working here. They have come to the Falklands well aware of the political situation and are obviously very comfortable with it otherwise they would not be here.”

At a Latin American Conference in London earlier this month, Argentina's ambassador to the UK called for "dialogue" between the two countries over the oil issue.

Ambassador Alicia Castro said: "Malvinas is not a national cause; it is a regional cause, and a global cause. All South American countries reject the existence of this colonial enclave. Argentina and the region also reject the unilateral British activities to explore and exploit natural resources – that belong to the Argentine people - on our continental shelf."

The Argentina embassy claim her remarks were met with "warm applause" from the 500 people present, including members of the Unite union.