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Argentina Action Over UK Oil Firms In Falklands

Argentina has started legal action against three British companies drilling for oil and gas off the disputed Falkland Islands.

Argentina's minister for the Falklands, Daniel Filmus, announced the start of the lawsuit in London.

Mr Filmus said a judge in Rio Grande, Argentina, had agreed to take on the case, involving three UK firms and two from the US.

The UK firms are understood to be Rockhopper, Premier Oil and Falkland Oil and Gas.

The move has raised tensions in a diplomatic row over the islands' sovereignty.

Foreign Secretary Philip Hammond described it as "an outrageous piece of bullying".

"It's an outrageous abuse of international procedure and we will take any action we can to resist it," Mr Hammond said.

"We are talking to the United States about what action we can take."

Mr Filmus told a press conference in London that his country was determined to use international and national law to settle the case.

The lawsuit came despite the fact Britain had made clear last week it believed any action would be "unreasonable".

Sky sources said Argentina's UK ambassador was last week summoned to the Foreign Office and given a "dressing down".

A statement on behalf of the Falklands Island Government dismissed the lawsuit as "another attempt by Argentina to try to block economic growth in the Falkland Islands".

"The Falkland Islands Government (FIG) fails to see how drilling is in any way a provocation," the statement read.

"We have the right to develop our economy, including the hydrocarbons industry, and we are exercising that right.

"Exploration drilling has been happening in Falkland Islands waters for many years.

"It is worth remembering that it was the Government of Argentina who walked away from working with the Falkland Islands on the development of a hydrocarbons industry some years ago.

"Argentine domestic law does not apply to the Falkland Islands and this latest action is clearly another attempt by Argentina to try to block economic growth in the Falkland Islands."