BRITAIN has dismissed a reported threat from Argentina to prosecute oil firms drilling near the Falklands.

Daniel Filmus, Argentina's minister for the disputed islands, reportedly said that the new hydrocarbon exploration efforts in the area "carry a huge environmental risk".

He added: "We want the owners of the companies to be tried according to Argentine laws and international statutes."

It comes after three British firms announced that they had found oil and gas in a remote field north of the Falklands.

A spokesman for the UK Foreign Office said: "We are satisfied that the Islands have the right to develop their hydrocarbons sector as a legitimate commercial venture with international oil and gas companies, and will continue to support them as they move forward. Argentine domestic law does not apply to the Falkland Islands."