The Royal Navy of the United Kingdom has intercepted an Argentinian survey ship that a Navy commander suggested had been ‘snooping for oil’ on the edge of British territorial waters off the Falkland Islands in the South Atlantic, The Telegraph reports.

HMS Clyde, which was patrolling the waters, saw off on Sunday Argentina’s survey ship ARA Puerto Deseado that had switched off her satellite tracker and approached UK territorial waters, the Royal Navy revealed to The Telegraph. The Argentinian ship that had equipment to survey the ocean retreated swiftly after HMS Clyde approached it, in what navy officials and experts called a minor incident near the Falkland Islands that have been a long-standing territorial dispute between the UK and Argentina, who also staged a brief war over the Falklands in 1982.

Commander Tom Sharpe, former captain of frigate HMS St Albans, told The Telegraph that the Argentinian ship had probably been “snooping” for oil.

Earlier this decade, the waters off the Falklands were proved to contain a billion barrels of oil, but exploration plans were stalled by the oil price slump.

Rockhopper Exploration, which found the oil, believes that the North Falkland Basin could have 1.7 billion barrels of oil in place.

Rockhopper and partners are working to reach a final investment decision on the Sea Lion project in the basin toward the end of this year. Gross capital expenditure (capex) for first oil is estimated at US$1.5 billion, with gross annual production planned at 80,000 bpd. Gross project revenue per year at peak production and oil prices at US$65 a barrel is expected at US$1.8 billion.

Rockhopper’s partner in the Sea Lion project, Premier Oil, said in July this year that a pathfinder bank was appointed to assist with the development of the senior financing structure for the project. Premier Oil continues to focus on securing funding for the project ahead of a final investment decision, it said.

By Tsvetana Paraskova for Oilprice.com

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