06.12.10 Menas Associates Desire Petroleum finds oil off the Falkland Islands

Desire Petroleum has discovered oil off the Falkland Islands in the South Atlantic. The company said it would have to carry out further tests in order to determine the significance of the new discovery, a second such find this year. The first, by another British exploration company, Rockhopper, was made in the same area in May.

Chairman of Desire Stephen Phipps said the find in the North Falkland basin was "highly encouraging." It is yet unclear whether or not the find will prove commercially viable, but Desire Petroleum says it expects to find further oil fields in the area.

Resumption of oil exploration around the Falklands has revived a long running dispute between Britain and Argentina about the sovereignty over the islands. In February, Argentina announced new controls on shipping to the Falklands. It has also raised the issue at the UN, and called for support for its sovereignty claim among Latin American countries.

Britain says there is no doubt over its sovereignty over the Falkland's territory, as most of the population residing there is of British descent.

Source: BBC News

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