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New Falklands gas discoveries increase UK-Argentina tensions

On May 2, 2012,

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With the discovery of major oil and gas reserves, the Falklands Islands have acquired a new economic and political significance.

By Irenea Renuncio

On 23 April 2012 UK-based energy exploration company Borders & Southern announced a ‘significant gas condensate discovery’ in the South Falklands Basin.

Although Borders & Southern have said ‘it is too early to give an accurate resource estimate’, it also declared that the South Falklands Basin is likely to hold ‘significant volumes’ of gas at the basin’s Darwin well and described the basin’s potential as ‘exciting’.

Borders & Southern’s discovery is, however, overshadowed by growing tensions between the UK and Argentina over the Falklands. While the discovery highlights the potential for further significant oil and gas discoveries in the South Falklands Basin, it is also likely to further increase bilateral tensions over the islands. (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Latin America, Oil and gas, Political risk, Uncategorized, Western Europe, by Jason McGeown
Tagged with: Argentina • Borders & Southern • Falkland • Falkland Islands • Falkland Oil & Gas • gas • New York Stock Exchange • oil • opportunity • Political risk • Rockhopper Exploration • South America • threat • UK
 

Government interference in South American oil underlines risks to investors

On April 4, 2012,

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International oil firms operating off Brazil are suddenly finding themselves under close government scrutiny

In South America, two confrontations between foreign oil firms and the governments of Brazil and Argentina should serve as stark reminders for investors of the continuing challenges of operating in the continent.

In Brazil, prosecutors are attempting to ban two oil firms – US-based Chevron and Swiss-based Transocean Ltd, its contracted drill-rig operator – from working in the country. Bloomberg News reported that prosecutor Gisele Porto had asked that “the two companies must be suspended from operating until they stop environmental damage from the November leak off the coast of Rio de Janeiro.” (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Enterprise risk, ESG (Ethical, social and governance), Latin America, Legal and regulatory, Oil and gas, Political risk, Uncategorized, by Jason McGeown
Tagged with: Argentina • Brazil • Campos Basin • Chevron • Chevron Corporation • Chubut Province • oil; gas • Rio de Janeiro • South America • Transocean • YPF
 

Will capture of Shining Path leader alter Peru business risks?

On February 15, 2012,

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Peru's military have scored another success against Shining Path (Photo credit: Powless via Flickr)

The capture last week by the Peruvian government of Florindo Eleuterio Flores-Hala – one of the key remaining leaders of the Shining Path insurgency – made headlines around the world, briefly pushing Peru and Shining Path back into the international spotlight.

During the 1980s the Shining Path group followed an explicitly Maoist political agenda and controlled large parts of rural Peru, making the organisation briefly one of the world’s most prominent Communist guerilla movements.

Conflict between the group and the government, killing thousands in the 1980s and ’90s, however steadily sapped the group’s popularity, while political and economic reforms by the government, assisted by harsh counterinsurgency measures during the administration of Alberto Fujimori, steadily drove a wedge between the group and its original support base. (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Agri-business, Chemicals, manufacturing and retail, Construction, Elections, Emerging markets, Enterprise risk, Financial services, Healthcare, ICT and engineering, Latin America, Mining, Political risk, Supply chain risk, Transportation and logistics, Uncategorized, by Jason McGeown
Tagged with: Alberto Fujimori • Associated Press • copper • economy • gdp • Gold • Growth • Huallaga Valley • insurgency • James Brandon • Lima • Maoism • Maoist • Ollanta Humala • opportunity • Peru • Peruvian government • Shining Path • South America • violence
 

Bolivia protests illustrate tough choice facing government and developers

On February 1, 2012,

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Ongoing protests by indigenous groups in Bolivia over a major road building project in the Amazon illustrate the tough choices facing President Evo Morales’ government as it tries to satisfy the competing demands of different indigenous sectors and to balance economic development with conservation.

A protest march of 5,000 people led by the Southern Indigenous Council (CONISUR) has just arrived in La Paz to demand that the government press ahead with long-standing plans to build a controversial road through the  Isiboro-Secure reserve – known as Tipnis – in the Amazon rainforest.

The CONISUR marchers largely consist of Andean indigenous peoples who comprise President Morales’ core support base and are seeking to colonise the Tipnis reserve. They say that the road will bring economic benefits to local people and also allow them better access to food and medicine. The protestors briefly clashed with police yesterday as they tried to enter the main square in La Paz where the presidential palace is located.

The government had however cancelled the planned 190 mile road just last year after a rival indigenous organization, representing groups native to the Tipnis area, the Indigenous People Federation of Bolivia (CIDOB), had held their own protest march and demonstration. They had argued that the road would accelerate de-forestation of the Amazon and damage their way of life.

(more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Construction, Economics, Elections, ESG (Ethical, social and governance), Latin America, Mining, Oil and gas, Political risk, Sustainability, Transportation and logistics, by Jason McGeown
Tagged with: Amazon • Amazon rainforest • Bolivia • Brazil • Evo Morales • Isiboro Sécure National Park and Indigenous Territory • La Paz • South America
 

UK and Argentina clash over Falklands: What are the risks for business?

On January 31, 2012,

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The UK Ministry of Defence has dispatched HMS Dauntless to the Falklands

Recent weeks have witnessed a clear rise in tensions between the UK and Argentina over the Falkland Islands – almost 30 years after the countries fought a short but bloody war over the South Atlantic archipelago.

The latest war of words between the two countries began in December when Argentina persuaded the Mercosur group of countries, which includes Argentina, Brazil, Paraguay and Uruguay, to ban ships sailing under the Falkland Islands flag from using the ports of member nations.

In recent days, the UK Prime Minister David Cameron described Argentina as having a ‘colonialist’ attitude to the islands. The British Ministry of Defence meanwhile announced today that it would be sending HMS Dauntless, one of its most modern ships, to the area.

With no end to the Falklands dispute in sight, it is worth examining how further deterioration in the countries relationship may affect business and trade. (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Emerging markets, Financial services, Latin America, Oil and gas, Political risk, Western Europe, by Jason McGeown
Tagged with: Argentina • Atlantic Ocean • David Cameron • Falkland Islands • HMS Dauntless • Latin America • Ministry of Defence • South America
 
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