**A British rig is due to begin drilling for oil in the territorial waters of the Falkland Islands, despite strong opposition from Argentina.**The platform has been towed to a point 100km (62 miles) north of the islands. Drilling is set to start at 0600 GMT.
Argentina says the move violates its sovereignty and has imposed shipping restrictions around the islands.
It is estimated the Falklands have the equivalent of 60 billion barrels of oil in total.
But a spokesman for Desire Petroleum, which is carrying out the drilling, told the BBC the amount which could be exploited commercially would probably be a fraction of that.
Argentina has threatened to take “adequate measures” to stop British oil exploration in contested waters around the islands", and is seeking support from Latin American countries at a regional meeting in Mexico.
“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. The rig is sitting firmly inside UK waters”
David Willie,
Desire Petroleum
Islanders unworried by pressure
Have Your Say: How serious is row
It wants its neighbours to also impose restrictions on shipping in the area.
It can already count on support from President Hugo Chavez of Venezuela, who said Britain was being irrational and had to realise the “time for empires was over”.
Argentina has long claimed the islands, which it calls the Malvinas.
It invaded the Falklands in 1982, before a UK taskforce seized back control in a short war that claimed the lives of 649 Argentine and 255 British service personnel.
But it has ruled out military action and is trying to pressure Britain into negotiations on sovereignty.
International law
Last year Argentina submitted a claim to the United Nations for a vast expanse of ocean, based on research into the extent of the continental shelf, stretching to the Antarctic and including the island chains governed by the UK.
It is due to raise the issue at the UN later this week.
Desire Petroleum spokesman David Willie said: “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. The rig is sitting firmly inside UK waters.”
He added that Argentina was beginning its own oil exploration programme in the waters west of the islands.
Mr Willie said oil exploration in the Falklands was at an early stage, and even if commercially viable amounts were found it would be many years before the oil would start to flow.
The rig, the Ocean Guardian, has been towed 8,000 miles from the Cromarty Firth in Scotland.
Last week the Falklands Legislative Assembly, which sold the licence to explore for oil to Desire, said it had “every right” to develop “legitimate business” in hydrocarbons.
UK Foreign Secretary David Miliband said British oil exploration in the area was “completely in accordance with international law”.
UK Prime Minister Gordon Brown also said the government had “made all the preparations that are necessary to make sure the Falkland islanders are properly protected”.
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