YPF plans to look for oil near Falklands

YPF plans to look for oil near FalklandsCEO of Spain's Repsol YPF, Antonio Brufau has said that company is planning to begin exploring for oil in Argentine waters near the Falkland Islands late this year.

Known to Latin Americans as the Malvinas, the Falklands, were the object of a brief war between Argentina and Britain in 1982.

Brufau, adding that the consortium will go ahead with its plans even though exploration in that area is not easy and the probability of success is very "low or limited", said," We're now in the phase of contracting the oil rig."

EFE-DowJones told that drilling will take place in deep waters of Argentina's continental shelf, closer to the Argentine mainland than the islands and in the South American country's territorial waters, Antonio Gomis, Repsol Argentina's general director.

YPF, Repsol's Argentine unit, is the lead operator of this exploratory project, in which Brazil's Petrobras and Pan American Energy also have stakes.

Repsol YPF's announcement comes amid a renewed dispute between Buenos Aires and London over the islands, with tensions heightening after the British rig Ocean Guardian began exploring for oil in the South Atlantic archipelago despite opposition from Argentina's government.

In spite of Argentina's defeat in the 1982 war, the government in Buenos Aires has continued to claim sovereignty over the islands. Argentina moved last week to implement its strategy to prevent British oil exploration in the Falklands, announcing controls on maritime traffic with the islands.

The measure would have little effect since the waters around the islands were under the control of Falklands authorities, Britain said.

The British press reported recently that the Falkland Islands may hold up to 60 billion barrels of crude oil. (With Input from Agencies)