A vast oil field near the Falkland Islands is even larger than originally estimated, with recoverable reserves now valued at an eye-watering £74 billion.
The discovery is likely to magnify tensions between Britain and Argentina, which has long disputed British sovereignty over remote British overseas territory in the south Atlantic, as well as drawing scrutiny from global powers such as China and Russia.
The stakes are immense, potentially reigniting geopolitical disputes over the region. Argentina, which refers to the islands as Las Malvinas, has previously condemned oil exploration in the area as illegal and sought to rally international support against it.
Meanwhile, the involvement of vast sums and critical natural resources may also attract the interest of nations keen to challenge the UK’s influence in the South Atlantic.
An independent assessment of the Sea Lion field, within the North Falkland Basin and 136 miles to the north of the archipelago, has pushed up the estimated recoverable oil from 791 million barrels to 917 million barrels, equivalent to double the annual output of the entire North Sea.
Rockhopper Exploration, which is the company leading the project, announced plans to extract 532 million barrels initially, reports the Telegraph, up from a previous estimate of 312 million, with most of the remainder potentially recoverable under future plans.
Despite Labour’s ban on new oil and gas licences after coming to power, the Falkland Islands government has approved production in a move which illustrates the self-governing territory’s autonomy over its natural resources.
The ban does not apply to the Falklands, as it is self-governing when it comes to everything except foreign affairs and defence, which are the responsibility of the UK government.
The Falklands has also refused to sign the Paris Agreement on climate change, and islanders are reported to be largely supportive of the exploration plans during a consultation carried out over the summer.
A statement issued by Rockhopper says: “In November FIG confirmed that, having received a number of comments, no further public consultation was required.”
The company anticipates making a final decision on the project in 2025, with first oil extraction pencilled in for late 2027.
The venture, expected to cost £3 billion, is a partnership between Rockhopper, which owns a 35% stake, and Israeli firm Navitas Petroleum, which holds 65%.
Labour has rejected the suggestion that new oil projects would lower energy bills, warning they would exacerbate climate change.
David Lammy, the Foreign Secretary, stated that climate action is “central to all that the Foreign Office does,” while the government ruled out providing financial support for the Falklands’ oil ambitions, adding that resource exploration remains a matter for the Falkland Islands government.
An FCDO spokespersons said: “The Falkland Islanders have the right to develop the Islands’ natural resources, which belong to the Falkland Islands. As such, hydrocarbons exploration is a matter for the Falkland Islands Government and the private companies concerned.”
A Falkland Islands Government spokesman said: “The Falkland Islands Government continues to prioritise our environmental commitments alongside the responsible development of oil reserves in line with our Islanders’ right to determine their own future.
“There is no disagreement between the Falkland Islands Government and the UK Government on this matter, the UK respects our constitutional right to responsibly develop our own natural resources.”
