Argentina has asked British and US market regulators to probe whether oil companies that have explored off the disputed Malvinas Islands have told investors about the risks of their «illicit» drilling, the Foreign Ministry said.
Thus, the government has triggered a series of measures against oil companies conducting drillings in Malvinas Islands as announced a week ago by Foreign Minister Héctor Timerman.
In a communiqué, the Foreign Ministry revealed that last Monday both the New York Stock Exchange Executive Director, and the head of the London Stock Exchange were warned about the “illegal” activities being carried out by five oil companies.
The sovereignty dispute between Britain and Argentina over the South Atlantic archipelago has reignited in recent months as the 30-year anniversary of the Malvinas war nears and as findings by British exploration firms raise hopes of a potential tax windfall and boon to the islands’ economy.
Argentina’s foreign ministry said it sent letters to the London and New York stock exchanges this week, asking that the five companies that have searched for oil off the Malvinas be forced to advise investors that Argentina deems their activities illegal.
The letters, which were signed by Timerman and point out that “companies Argos Resources Limited, Borders & Southern Petroleum PLC, Desire Petroleum PLC, Falkland Oil and Gas Limited, and Rockhopper Exploration PLC, are illegitimately carrying out hydrocarbons exploration on the Argentine continental shelf, exposing themselves to administrative, civil and criminal sanctions.»
«We have solicited … that they be required to make these illicit activities known and quantify the risks involved. In this way, the stock exchange will be able to evaluate if the firms can continue to list their shares or whether they must provide more information to the market.»
The companies trade in London but Argentina also advised New York regulators, in case the companies move to list there in the future.
The government also sent along a list of all the companies linked to the five exploration companies, including international banks, auditors, brokers, advisers and lawyers, along with institutional investors.
Some of the biggest banks named include Bank of America Merrill Lynch, HSBC, Barclays Plc, Lloyds Banking Group Plc and the Royal Bank of Scotland Group Plc.
These banks could be at risk of asset seizure in Argentina if the government successfully sues them in local courts.
Argentina has steadily increased pressure on Britain to hold sovereignty talks, introducing new controls on shipping, asking for a flights accord to be overhauled and complaining to the United Nations about Britain’s «militarization» of the South Atlantic.
London has said this amounts to harassment.
British leaders say they will only negotiate sovereignty or oil rights in the unlikely event that the 3,000 islanders want that.
Source: Buenos Aires Herald