Monday, March 1, 2010

BHP Billiton (LON:BLT), Argentina, Falklands

BHP Billiton, Falklands and Argentina

The threats be Argentina to hold back projects of BHP Billiton (LON:BLT) on its mainland soil has little bite to it, as the company is currently doing nothing on the mainland of Argentina, and more than likely was sure to shut their work there down before committing to the Falkland Island area for oil exploration.

What could be a legitimate threat would be toward future exploration licenses awarded the country for Argentina, but that's not here nor there, and again, has little bite to it, if any at all, as the actions of BHP Billiton show.

It seems the continued actions of Argentina are in response to frustration over the United Nations to not intervene in the situation, which is in reality a territorial dispute between the U.K. and Argentina, which most countries consider to be the property of the U.K.

So to attempt to expand this to other areas outside the United Nations isn't going to prove much, other than to remind nations that Argentina was defeated militarily when it last attempted to forcefully regain the island, and there's little political will to pursue this in any way by other countries.

BHP Billiton won't be hindered in any way by all of this, and other than the occasional protests from Argentina, will largely not suffer any consequences from getting involved with the project, but will profit from it if there is significant oil reserves found, as the hold a 51 percent stake in the project.

BHP Billiton, Falklands and Argentina


DP said...

actually, most countries see the Falklands as argentinean so I'm not sure where you are getting your information from. uk has no place in the falklands.. it's a joke.

DP said...

it doesnt matter that the drilling is not on argentinean land. if someone was drilling a few miles of the UK coast from land that is supposedly theirs, there would be a fucking uproar.