30th Jun 2015 11:38
LONDON (Alliance News) - The UK Foreign and Commonwealth Office Tuesday condemned the Argentinian government's attempts to "destroy the Falklands economy" after a judge ordered the seizure of assets belonging to five companies drilling for oil in the Falkland Islands.
The Falkland Islands, although a British overseas territory, is also claimed to be owned by Argentina in a long running dispute over its sovereignty.
"We have been absolutely clear that Argentine domestic law does not apply in the Falkland Islands, nor in the waters that surround them. This politically motivated decision to target company assets is a wholly unacceptable attempt to exercise extra-territorial jurisdiction, and has no legal justification whatsoever," said the Foreign and Commonwealth Office Tuesday.
On Monday, an Argentinian judge ordered the assets of five companies to be seized, including FTSE 250-listed Premier Oil PLC, Rockhopper Exploration PLC and Falkland Oil and Gas Ltd, which have been working together offshore the Islands, making oil discoveries at numerous wells since the start of drilling in 2010.
The most recent threat prior to the judge's ruling was in April, when Premier, Rockhopper and Falkland Oil's drilling of the Isobel deep well was marred by a speech to mark the 33rd anniversary of the Falklands conflict by the Argentinian President Cristina Fernandez de Kirchner, who threatened the UK companies with court action which could lead to arrest warrants being issued on the grounds of illegally operating in Argentine waters.
That threat came after the British government announced plans to spend GBP280 million over the next 10 years on renewing and strengthening Falklands forces.
Non-listed companies Noble Energy Inc and Edison International Spa are also included in the judge's order.
On Tuesday, the UK government said the assets, worth a total of USD156 million, mainly consists of international equipment, including ships, drilling platforms and bank accounts.
"This action, aimed at British and international oil and gas companies, has dangerous implications for global business. The government of Argentina should refrain from unjustified provocations of this kind," said the UK govermment.
"The Falkland Islands? plans to develop their hydrocarbons industry, with the support and expertise of companies from around the world, is a legitimate commercial venture," it added.
As none of the companies involved in the dispute are based in Argentina, it is unclear what the next step for Argentinian authorities will be or how the order will be implemented and justified.
On Tuesday afternoon, Premier shares were down 0.2% to 150.93 pence, Rockhopper shares were down 0.7% to 68.50p and Falkland Oil shares were up 0.9% to 27.25p.
By Joshua Warner; [email protected]; @JoshAlliance
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