Argentine oil companies have decided to spend up to US$140 million to explore oil wells near Falkland Islands waters. The companies involved are YPF, Brazil’s Petrobras and PAE, which is a subsidiary of British Petroleum. It is believed the initiative may have been suggested by the Argentine government, which has been responding to exploratory drilling in Falklands waters by four British companies.
The first well drilled by British companies in the north Falkland basin showed abundant signs of oil and gas at first, but has since been sealed off through perceived lack of commercial volumes.
