Argentina intimidating Dutch oil firm?

BUENOS AIRES, Oct. 8 (UPI) -- Argentina faces charges that it intimidated a Dutch geological and scientific firm that surveyed Falkland Islands waters for hydrocarbons and other minerals.

An official Argentine investigation into Fugro N.V., the world's largest surveyor of deep water and seabed for minerals, was countered by the company, which said it had done nothing wrong.

Critics of the Argentine move said Buenos Aires' decision was part of a continuing campaign to discourage foreign companies from having anything to do with the Falklands, a British Overseas Territory claimed as by Argentina.

Argentine forces invaded the islands in 1982 but were beaten back. Although the military dictatorship that ordered the attack was succeeded by civilian rulers successive Argentine governments maintained a sovereignty claim on the Falklands. The 74-day conflict in 1982 led to more than 1,000 deaths and an official Argentine surrender but a tense standoff has never been far away.

After years of an uneasy peace between Argentine and British forces in the South Atlantic, Argentina last year launched a series of tougher measures against international shipping to deter vessels from calling at Falklands ports. A blacklist was announced to warn shippers they could expect to be barred from Argentine trade if they traded with the Falklands.

Fugro's survey vessel Fugro Meridian surveyed Falklands' waters for BHP Billiton and Falklands Oil and Gas Limited. It wasn't immediately clear if Argentina also intended to confront the Anglo-Australian giant, which has interests in Argentina. Earlier this year Argentina warned BHP Billiton, the world's largest mining company, against entering oil exploration activities in the Falklands.

Fugro Meridian is operated by Fugro Survey Limited of Aberdeen, Scotland. A Fugro officials said they stood by the company's work in the Falklands as conformed to legal requirements.

Argentine Attorney General Esteban Righi said he ordered a criminal investigation into Fugro activities in Falklands after the company entered the Argentine continental platform during its survey.

Argentina earlier issued warnings to oil companies active in the North Falklands Basin, believed to hold large hydrocarbon deposits. So far, only the exploration by Rockhopper Exploration Plc has produced positive oil and natural gas results while other oil firms, including Desire Petroleum Plc and FOGL, have been conducting new surveys to determine commercially viable oil deposits.

Desire reported finding some gas but is interested in building an inventory of commercially feasible oil wells in the Falklands.

BHP Billiton is among companies still exploring in the area but it has called off participation in the second phase of exploration south of the Falklands.