Falkland Oil and Gas is pressing ahead with surveying activities off the coast of the contested South Atlantic islands despite ongoing threats of legal action from the government of Argentina.
It is thought that Buenos Aires intends to draft a “criminal investigation” against five small explorers in the region, including London-based Falkland.
The Argentine Embassy in London this week sent out hundreds of letters to oil firms and industry analysts threatening to ban firms supporting explorers around the islands from exploiting shale gas in the South American country for 20 years.
But sources close to firms involved in the region have shrugged off the threats and they insisted it was “business as usual” for companies such as Falkland, Rockhopper, Premier Oil and Borders and Southern Petroleum.
One source close to the industry said the Argentinians send similar letters “pretty much every year”.
Another said: “It’s just the same old nonsense.”
In February, Argentine foreign minister Hector Timerman visited London and also vowed to prosecute oil firms exploring off the Falklands.
The problem is an ongoing one in the diplomatic row between Westminster and Buenos Aires over the small but resource-rich group of islands the Argentinians refer to as the Malvinas.
Yesterday, Falkland Oil announced its final drilling survey had begun ahead of the start of drilling operations in late 2014.
Tim Bushell, chief executive, said: “This is our final survey prior to the commencement of drilling operations in late 2014.”
He said the firm’s data covered an area equivalent in size to over 40 North Sea blocks.
He said: “This illustrates both the scale of our assets and the commitment of the joint venture to the ongoing exploration programme.”
The company declined to comment on the letter from the Argentine Embassy.
Yesterday, Falkland Islanders elected a new government. The five new members of the legislative assembly will work full time where previously they were only part time. This is due to the increasing importance of oil and gas..