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Buenos Aires (UPI) Jan 4, 2011 British-banked oil exploration and military buildup on and near the Falkland Islands flouts bilateral agreements, which are now useless and void, Argentina said in the latest escalation of war of words over the South Atlantic territories. Argentina issued the statement to mark what it called the anniversary of British reoccupation of the Falklands -- called Malvinas in Argentine official documents. Argentina and Britain went to war over the islands in 1982 after an unsuccessful Argentine assault. The 74-day conflict led to more than 1,000 deaths and an official Argentine military surrender. This week's Argentine statement referred to an 1833 resettlement of the islands by the British after a period of European encampments, including those from European-ruled Argentina. Argentina stepped up its sovereignty claim on the islands when British-backed oil companies resumed exploration and prospecting in the South Atlantic waters in 2009. Buenos Aires also embarked on a program to refurbish its armed forces to replace weapons systems -- seen as an answer to Britain's increased military presence on the Falklands. Argentina has explored military purchases from Russia, China and several European suppliers but is hamstrung by a cash crunch. Last year it announced resumption of its nuclear power program. The Argentine Foreign Ministry said that "provisional understandings" reached between Buenos Aires and London were no longer of any use because of "unilateral" British actions. It cited oil exploration and military exercises on the islands among unilateral actions that made bilateral cooperation difficult. Argentina effectively downgraded its London embassy in 2008 after it withdrew nomination of a new head of the diplomatic mission. In the latest statement, the Argentine Foreign Ministry cited declarations of support for its sovereignty claim, including those from the Union of South American States. Meanwhile, Desire Petroleum, one of the companies drilling for oil in the North Falkland Basin, South Atlantic, said it would plug and abandon an oil well after in failed to yield significant quantities of hydrocarbons. Desire Petroleum said its Dawn prospect had produced no results of commercial significance. Other companies, including Rockhopper Exploration, are continuing to drill for oil in the North Falkland Basin. The implication of the well results for other prospecting operations in the area will be assessed after the company receives new data from its findings, Desire Petroleum said. So far only Rockhopper Exploration has reported commercially viable results from its drilling and exploration. Early geological surveys had speculated the Falklands waters might hold hydrocarbon deposits as large as those in the North Sea or even Saudi Arabia.
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