"Argentina has escalated its diplomatic battle with Britain over the Falkland Islands by taking steps to sue five UK oil exploration companies.
The Argentine president has targeted Desire Petroleum, Falkland Oil and Gas, Rockhopper Exploration, Borders and Southern Petroleum, claiming the firms are engaging in "illegal and clandestine activities" by drilling around the islands.
Cristina Fernández de Kirchner said the companies were operating "in a sovereign area of the Argentine nation and as such fall within its specified laws and rules."
Her foreign ministry said the declaration opened the way for the "immediate launch" of criminal proceedings against the small oil companies - which only moved into the area two years ago.
It said the Argentine government would soon make contact with Britain's Treasury, the Financial Services Authority, the International Organisation of Securities Commissions and the New York Stock Exchange as it pursues the threat.
The British Government has hit back and promised to work with any company potentially affected."
http://uk.news.yahoo.com/argentina-p...105854402.html
