London , England ( CNN ) -- A British oil rig has started drilling off the Falkland Islands in a move likely to stoke further tensions between Argentina and the UK over the disputed South Atlantic territory . In a statement to the London Stock Exchange , British oil and gas exploration company Desire Petroleum said the Ocean Guardian rig had begun drilling an exploration well in the North Falkland Basin , some 100 kilometers ( 60 miles ) north of the islands . Desire estimates that the North Falkland Basin could contain 3.5 billion barrels of oil as well as having `` significant gas potential . '' The exploratory drilling is expected to last around 30 days , a spokesman for the company told CNN . But potential revenues from oil and gas have reignited a long-running dispute between London and Buenos Aires over ownership of the Falklands . Last Tuesday Argentine President Cristina Fernandez de Kirchner signed a decree requiring all ships navigating from Argentina to the islands to carry a government permit . The Falklands , known as Las Malvinas in Argentina , lie in the South Atlantic Ocean off the Argentinean coast and have been under British rule since 1833 . Argentina has always claimed sovereignty over the islands and invaded them in 1982 , prompting a war in which more than 600 Argentinean and 255 British military personnel died . The island 's government , representing a population of around 2,500 , remains committed to British sovereignty and the UK maintains a military presence on the islands . The spokesman for Desire said that the company was not commenting on political issues and was `` focusing on the drilling campaign . '' The Argentine position is that natural resources around the islands should be protected , and Britain must accept international resolutions labeling the Falklands a disputed area . `` This has to do with the defense of the interests of Argentineans , not just about sovereignty , '' Argentine Cabinet Chief Anibal Fernandez said last week , adding that Argentina lays claim not just to the islands , but to any resources that could be found there . In a statement last week , the Falkland Islands government said it had `` every right to develop a hydrocarbons industry within our waters . '' `` The British Government has clearly stated that they support our right to develop legitimate business , '' it said . `` The British Government have also reiterated their stance on our British sovereignty . ''
Argentina and UK at odds over ownership of South Atlantic islands . Falklands government says it has `` every right '' to develop hydrocarbons industry . But Argentine officials say they have no plans for drilling in the area, which is claimed by both countries. Argentina passed decree requiring Falklands-bound ships to carry permit .