Fury in Argentina as oil boom to transform Falklands | World | News
A potential oil boom in the Falklands could transform the islands, which have previously relied on the sale of sheep and squid. Work has begun on infrastructure for an oilfield 137 miles off the north coast.
If all goes according to plan, the first oil could be produced at the Sea Lion oilfield in March 2028, with output reaching up to 50,000 barrels a day by 2032. The project is being piloted by Israel’s Navitas Petroleum and the UK’s Rockhopper. The oilfield could triple the Falkland Islands’ income, with peak taxes and royalties to each of the 3,500 islands estimated to be £80,000 a year.
“Many have thought this is a white elephant, that it would never happen, but Navitas seems to be pushing through that fatigue,” said Stirling Harcus, chair of the Falklands’ chamber of commerce. “Moving into the production phase will be transformational for the Falklands.”
The plans have caused fury in Argentina, 298 miles away. Britain asserted control over the islands in 1833, but Argentina has long staked a claim to them, invading in a two-month war in 1982, which Britain won.
In a 2013 sovereignty referendum, almost all (99.8%) of the votes cast were in favour of remaining a UK overseas territory, with only three people voting against.
This hasn’t stopped Argentina from claiming sovereignty. Right-wing President Javier Milei labelled Sea Lion a “unilateral and illegitimate” attempt to “advance on resources that belong to Argentina”.
Cheryl Roberts, a member of the Falklands’ eight-person legislative assembly, argued the islands need “more income”. She said: “This is the closest we’ve ever been.”
This comes after it was revealed that oil production in the North Sea has dropped by 80% since 2000, with the government’s stalling on new licences.
The Foreign, Commonwealth & Development Office said the Sea Lion project was an “entirely separate and unrelated issue” to defence, adding that the Falklands’ natural resources “belong to the overseas territory”.
Grace Livingstone, a historian and lecturer at the University of Cambridge, said that Argentina “may well have a legal case” against the project due to a UN resolution that prohibits “unilateral modifications” of the status quo in the islands.
