Argentina Plans to Hijack British Oil Rigs in Falklands

Argentina is planning to hijack British oil rigs near the Falkland Islands to stop them drilling in the disputed territory, according to defence sources who say that the country has purchased four new super-tugs to intercept oil platforms.

Writing for the Brazilian website Defesanet, analyst Roberto Lopes says it is "not true" that Argentina is only purchasing the tugs to replace older vessels.

"These vessels will be used to intercept the British and American oil platforms designated for travel to the Falklands when drilling starts in the Sea Lion oil field," he writes, adding: "the British will not allow oil exploration vessels travel to the Falklands without a military escort".

Oil reserves around the disputed islands are estimated to be worth tens of billions of dollars, and British attempts to extra the oil have aroused anger in Argentina.

The first oil production in the Sea Lion field is scheduled to start next spring. The field, located 135 miles north of the Falkland Islands will be drilled by British group Premier Oil.

When the oil starts flowing, it will be taxed at 26 percent, making the 3,000 Falkland Islanders one of the wealthiest communities on Earth.

The Islands presently belong to Britain, but are also claimed by Argentina. In 1982, the Argentine dictatorship of General Galtieri invaded and occupied the islands before the British government under Margaret Thatcher sent and expeditionary force and took them back.

Now that large oil reserves have been found in the waters surrounding the islands, Argentina has renewed its claim, wanting the oil wealth for itself.

Premier Oil is the closest to extracting oil, the waxy crude of the Sea Lion field, which is located in the North Falklands Basin (see map) and holds an estimated 400m barrels of recoverable oil. A decision on whether to develop the field is expected in early 2015.

A three-way exploration agreement has been reached for nearly ten million largely unexplored acres east of the islands. Falkland Oil and Gas (FOGL), another British firm, partnered with the region’s first two non-British energy companies: Edison (out of Italy) and the American firm Noble Energy. Borders & Southern, which found gas condensate south of the islands in 2012, is also currently searching for a partner to put more holes into the shelf. But the combination of extreme wind, powerful waves and frigid temperatures makes this a particularly harsh environment. “In the Falkland Islands, we are a long way from everything,” says Richard Winkelman, Noble’s country manager. “We know it's going to be a unique challenge for us.”

http://www.economist.com/blogs/americasview/2014/02/oil-and-gas-falklands

Using a minimum value of $20 billion for "Tens of Billions"

$20 billion x 26 percent tax / 3,000 residents =

$1.7 million in tax revenue per Falklander - man, woman, and child.

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