The International Resource Journal: Desire the right

Desire the right
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admin on 25 March, 2010 02:24:00
 
Whether you recognise the archipelago in the South Atlantic Ocean to be the
Falkland Islands or the Malvinas, there are a few geological facts that everyone
can agree on. There are 340 islands in the group. Two main islands make up the
bulk of this; West Falkland and East Falkland or Spanish Isla Gran Malvinas and
Isla Soledad, the total land mass being approximately 4,700 square miles with an
estimated 800 mile coastline. According to July 2008 estimates, the Islands are
home to approximately 3,140 residents. The Island's motto is, "Desire the
Right."
The latest round of conflict
The problems of late begin back in 2007, when an agreement with Argentina, that
included the large oil reserves we hear so much about today, was terminated.
Argentina withdrew from the agreement just days before the 25th anniversary of
the horrific Falklands War of 1982 in which 910 Argentine and British servicemen
were killed. Renewed conflict regarding sovereignty over the Islands dates back
to 2003, when then-Argentinean President, Néstor Kirchner, announced that
the Islands were a top priority and he wanted them back as a proper part of
Argentina. In June that same year, the issue of sovereignty between Argentina
and the United Kingdom was brought in talks before the United Nations. Attempts
to resolve the issue have been ongoing ever since. In 2009, during a meeting
between British Prime Minister Gordon Brown and Argentinean President Cristina
Fernández de Kirchner, Brown announced that no further talks would take
place because ownership is not an issue. It is widely accepted that most island
residents choose to, "live British," in terms of their cultural identity and
heritage; a point that both the British and Falklands governments have
highlighted amidst these most recent disputes.
However, without the previous agreement over island resources, the news agenda
has turned from what was previously considered a dispute for true sovereignty,
to a battle for ownership of lucrative natural mineral and oil reserves.
Is it all about oil?
According to history, the short answer is no, however we are still talking about
an estimated 60 billion barrels in reserves. Prior to 2007, the oil and gas
exploration agreements were still considered to be a highly significant factor
in discussion, but not the final word. The previous Accord had allowed for
resources exploration by both the UK and Argentina, accompanied by open
discourse on their findings and activities. This agreement was largely believed
to be an attempt to restore peace and cooperation after the Falklands war,
albeit relatively short-lived. Those implicated by Argentina's swift exit from
the agreement acted quickly. Falkland Oil and Gas, whose own website notes the
Queen of England to be the Island's Head of State, and mining giant BHP
Billiton, signed a new agreement to enable exploration of the territory.
In 2010 Desire Petroleum, of the UK, became part of the picture when its
semi-submersible rig, Ocean Guardian (sub-contracted from Diamond Offshore
Drilling International) arrived in the Islands on February 19, 2010. Desire's
shares spiked more than 10 per cent upon the rig's arrival as the company
prepared to commence drilling at its Liz prospect, situated 1,000 miles off the
island's coast. Three days later, on February 22, Desire announced that it had
spudded the Liz 14 /19-A exploration well; a well drilling with a target depth
of 3,500 metres. This marked the second phase of exploratory drilling offshore
of the Islands, and the first time exploration drilling to the south of the
islands has taken place for BHP. The drilling was scheduled to take 30 days.
"Desire is an oil company and it's exploring for oil and not getting involved in
what Argentina is saying about going to the UN," David Willie, a spokesman for
Desire, told the BBC on February 22.
"The Falkland Islands Government is encouraged by the significant investment
made by the operating companies involved in hydrocarbons exploration, which is
at a very early stage," the Falkland Islands Government states. "Falkland
Islands private sector companies are providing support services to the industry,
and have prepared an onshore operating base in record time for the 2010 drilling
operations."
Will it end with the U.S.?
On February 26, just four days after Desire commenced drilling, it was announced
that Hilary Clinton, the United States Secretary of State, would meet with de
Kirchner in Uruguay on March 1 to discuss Britain's refusals to participate in
talks over Islands sovereignty.
Clinton isn't the only outsider to get involved, although Hugo Chavez, President
of Venezuela, and his "the time for empires is over," speech on national
television might be a rather different statement on the matter. The British
press went wild and accused Clinton of a "snub to Britain," (Daily Mail) just
days after Obama's failure to back Britain was labelled "feeble."
News reports didn't improve much after Clinton met de Kirchner either. On March
3, it was announced that Argentina was celebrating a "diplomatic coup," (The
Times) after Clinton backed plans to commence talks as per Argentina's request.
Clinton has said that she is prepared to mediate discussion.
The general consensus is that this latest row, fuelled by both how lucrative the
oil reserves are and the investments already made into exploration by companies
from various countries, has opened old wounds which had never truly healed. The
blame game and sidetaking which has ensued represents the next step, as
worldwide superpowers are implored to for their opinion and influence. It
appears that both this single oil dispute ,that the businesses involved are
trying to keep separate from the wider conflict, and the age-old sovereignty
battle have a long way to go.