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According to geological surveys, up to 60bn barrels of hydrocarbon deposits may lie beneath the seabed off the Falklands.

( http://www.guardian.co.uk/uk/2010/feb/17/argentina-steps-up-falkands-oil-row - 17 FEB 2010  )

In December 2009, Argentina repeated its claim to sovereignty over the Falklands and several other British overseas territories.

( http://news.bbc.co.uk/2/hi/business/8520038.stm - 17 FEB 2010  )

In January 2010 the British government again rejected Argentina's claims. According to a statement from junior Foreign Office minister Chris Bryant, a note verbale had been delivered to the Argentine charge d'affaires in London, reiterating that the UK was in "no doubt" concerning its sovereignty over the Falkland Islands, South Georgia, the South Sandwich Islands, and the British Antarctic Territory.

( http://news.bbc.co.uk/2/hi/uk_news/politics/8466209.stm - 18 JAN 2010  )

In February 2010 the oil drilling rig Ocean Guardian, contracted from Diamond Offshore Drilling by Desire Petroleum, arrived in Falkands waters, having left Invergordon, Scotland in November 2009.

( http://news.bbc.co.uk/2/hi/uk_news/scotland/highlands_and_islands/8504047.stm - 08 FEB 2010 )

The Ocean Guardian was slated to begin exploratory drilling in the North Falklands Basin about 100 miles (150 km) north of the Falklands.

( http://www.guardian.co.uk/uk/2010/feb/07/falkland-islands-oil-britain-argentina - 07 FEB 20101  )

( http://www.guardian.co.uk/uk/2010/feb/17/argentina-steps-up-falkands-oil-row - 17 FEB 2010  )

Throughout 2010 the companies AGR Petroleum Services, BHP Billiton, Desire Petroleum, Falklands Oil and Gas, and Rockhopper will alternate using the rig.

( http://news.bbc.co.uk/2/hi/uk_news/scotland/highlands_and_islands/8519694.stm - 17 FEB 2010 )

( http://www.guardian.co.uk/uk/2010/feb/07/falkland-islands-oil-britain-argentina - 07 FEB 20101  )

( http://www.guardian.co.uk/uk/2010/feb/17/argentina-steps-up-falkands-oil-row - 17 FEB 2010  )

Residents of the Falklands expect to receive 20% of any profits and 9% of royalties, along with onshore investment, including renovation of the main port and construction of 350 houses.

( http://www.guardian.co.uk/uk/2010/feb/07/falkland-islands-oil-britain-argentina - 07 FEB 20101  )

On 16 February 2010 Argentine President Cristina Fernández de Kirchner signed a decree requiring all vessels to obtain prior permission from the Argentine government before crossing Argentine territorial waters en route to the Falkland Islands, South Georgia, or the South Sandwich Islands.

( http://news.bbc.co.uk/2/hi/business/8520038.stm - 17 FEB 2010  )

( http://news.bbc.co.uk/2/hi/americas/8518982.stm - 17 FEB 2010  )

( http://www.guardian.co.uk/uk/2010/feb/17/argentina-steps-up-falkands-oil-row - 17 FEB 2010  )

"Cabinet Chief Anibal Fernandez said the decree sought to achieve "not only a defence of Argentine sovereignty but also of all the resources" in the area."

( http://news.bbc.co.uk/2/hi/americas/8518982.stm - 17 FEB 2010  )

"What they are doing is illegitimate," said Jorge Taiana, the foreign minister. "It's a violation of our sovereignty. We will do everything possible to defend and preserve our rights."

( http://www.guardian.co.uk/uk/2010/feb/07/falkland-islands-oil-britain-argentina - 07 FEB 20101  )

The UK Foreign Office stated that the waters surrounding the Falklands were under British control and that navigation would not be affected

( http://news.bbc.co.uk/2/hi/americas/8518982.stm - 17 FEB 2010 )

, while

"Chairman of the Parliamentary all-party Falklands group, Sir Nicholas Winterton, said the Argentine decree was "pathetic and useless" and designed simply to try to impede the economic progress of the islands."

( http://news.bbc.co.uk/2/hi/americas/8518982.stm - 17 FEB 2010  )