(MintPress) — In the wake of the 30-year anniversary of the 74-day Falkland Islands war, the conflict between the United Kingdom and Argentina over the Atlantic chain of islands is expected to once again heat up, as Argentina’s state-owned oil company announces plans to launch oil exploration in the waters surrounding the Falklands.
Though located off the coast of Argentina, the Falkland Islands are officially a territory of the U.K. A brief Argentine occupation in 1982 of the islands incited a war, carried out under the direction of then-Prime Minister Margaret Thatcher. Successful in its attempts, the U.K. regained control, to the delight of the island’s residents and, now, British oil companies.
British oil companies began drilling in the Falkland regions in 2010, to the dismay of Argentina’s President Cristina Kirchner, who saw the move as a resource grab on an island system located in Argentina’s territorial waters.
Ongoing efforts by British oil companies, particularly Rockhopper Exploration, to explore for oil on the islands and surrounding waters prompted Kirchner to abandon her seat at the Olympic Opening Ceremony in protest.
The newly announced efforts by Argentina to now launch its own joint oil exploration efforts with Venezuela are likely to be met by strong resistance from the U.K., as it’s estimated that the region is home to more than $180 billion worth of oil.
Despite efforts by Kirchner, it’s unlikely the U.K. and Argentina will engage in negotiations on the world stage, with U.K. Prime Minister David Cameron claiming an upcoming referendum will give the people of the Islands, most of whom are of British descent, an opportunity to decide their own fate. The referendum will take place early next year. The U.S. has publicly stood beside this argument, though has been careful to not specifically take sides.
The U.N. has also remained somewhat impartial on the issue, encouraging discussions between the two nations. Kirchner presented her case at the U.N. Committee on Decolonization in June, where she heard again from Cameron that negotiations would only take place if the referendum in the Falklands uncovered a lack of support for U.K. control.
A war over oil
According to Petroleum World, an online publication representing Latin American energy, oil and gas, Argentina’s state-owned oil company, YPF, is engaging in discussions with Venezuelan state oil company, PDVSA, to undergo oil exploration and drilling around the Falkland Islands.
“We discussed the need for oil and gas exploration in the territory and offshore areas, adjacent to the Falklands, but we have to analyze the costs and time,” Rafael Ramirez Carreno, PDVSA’s president, told Pagina12, an Argentine newspaper.
Carreno told Pagina12 that the partnership with YPF was part of the oil giant’s plan to increase its barrel production, moving into new territory — one in which Argentina sees as its own.
“We have a field in the (Venezuelan) Orinoco Belt, which produces 130,000 barrels a day. We will increase that production to 160,000 barrels and develop another field, which would produce another 200,000 barrels,” he said.
Referring to YPF as a state-owned oil venture reflects a fairly recent move by the Argentine government, which took over 51 percent of the oil giant in April from Spain’s Repsol company.
The recent move to use YPF for oil exploration is one seen with direct relation to Argentine government claims that the Falklands are the property of Argentina, where they are more commonly referred to as the Maldives.
With so much at stake for British companies, it’s unlikely such explorations will go down without some form of conflict.
The Guardian reported in February that Edison Investment Research analysts said that 8.3 billion barrels of oil are estimated to be present in waters surrounding the Falklands.
British oil companies are miles ahead of their South American counterparts. Two primary U.K. oil giants have been hard at work for quite some time, culminating in a deal between the Premier Oil and Rockhopper Exploration — one worth at least $231 million upfront.
Rockhopper Exploration did the dirty work, undergoing oil exploration, efforts which proved to be fruitful, as it discovered there was oil in the region. Their findings are where their worth was made, handing over the information to Premier Oil.
When this was reported in February, U.K. Prime Minister David Cameron stood firm against complaints by Kirchner, who said the argument over the Falkland Islands — Malvinas to her — should be brought before the United Nations.
Public support, outrage
The debate over the islands, at least on the side of the British, is to bring it back to the people who reside there. Residents of the Falklands overwhelmingly represent British descendents, with many still holding ties to the U.K.
When Kirchner approached Cameron in June during the G20 Summit, in the midst of the 30th anniversary of the war over the Falklands, with a letter — one in which Cameron refused to read, according to the Guardian — Cameron dodged the issue by claiming the referendum will resolve the issue, without the need for negotiations between the U.K. and Argentina.
“I am not proposing a full discussion now on the Falklands, but I hope you noted they are holding a referendum and you should respect their views,” he said, according to the Guardian. “We believe in self-determination and act as democrats here in the G20.”
Those born on the Falklands have the opportunity to travel to the U.K., where they are able to attend university and join the workforce. With more ties in identity to the U.K. than Argentina, it would make sense for a referendum to go their way. Having been present on the island long enough, the British culture dominates — and there are few complaints among islanders who enjoy their part of the world, complete with U.K. military protection and a low unemployment rate.
Yet Argentina still sees injustice in the fact that an island in its territory, now discovered to be ripe with oil, is in the control of the U.K., a major Western power, backed by the U.S. As Argentina attempts to work its way out of economic disparity, it sees U.K. control over, not only the islands, but the waters surrounding it, as a form of economic bullying — and it appears now it will have none of it.
As Cameron said, following Kirchner’s pleas at the G20 for international pressure in favor of negotiations between the U.K. and Argentina, there will be no negotiations.
“This is now some game of global Monopoly with nations passing a territory between them,” the Guardian reported the prime minister said in June. “It’s about the islanders determining their own future.”
Those within Latin America do not necessarily see it this way. Standing in alliance with Argentina, its fellow Latin American nations — including Brazil, Uruguay and Chile — Cuba and Bolivia have added their voices to Kirchner’s argument — arguably a representation of the people of Latin America, as well.
As BBC writer John Simpson puts it, “There is no instinctive disapproval in the continent of the remnants of colonialism, and a feeling that a European power has no real business operating from territory in the South Atlantic.”