Is this why Argentina is suddenly interested? Falklands Islands are set to cash in £4billion from new oil field

Get your news delivered straight to you by 7am - sign up to our new Morning Mail newsletter for FREESee more Daily Mail on Google - save us as a Preferred Source Published: 18:22 EDT, 4 September 2026 | Updated: 18:59 EDT, 4 September 2026 The Falkland Islands are set to cash in £4billion from oil reserves buried beneath the Atlantic, as Argentina ramps up its claim over the territory.The discovery of 900 million barrels of oil within the Islands' exclusive economic zone has fuelled the country's latest bid to regain 'Las Malvinas'. Argentine president Javier Milei has insisted he will 'act swiftly' to 'recover' the islands, which he claims belong to his country by law and historical precedent.Corporation tax revenues and royalties from the Sea Lion field, which is expected to start pumping oil in 2028, are expected to transform the Islands' economy.The project could generate £4billion in revenue over 35 years, the equivalent of around £1million per islander. The field is six times larger than the Rosebank field west of the Shetland Islands.The islands' government has also pledged to contribute to its own security costs from the windfall, thereby reducing the £500million Britain spends each year to protect the Overseas Territory.The territory's gross domestic product is predicted to triple, hundreds of jobs will be created, and it will become energy self-sufficient. But as it stands, Argentina will gain nothing and this has triggered fury in Buenos Aires, with Mr Milei saying he 'will not allow it' to happen.The Sea Lion field 150 miles north of Port Stanley was discovered in 2010 but multiple projects to extract the oil have failed. Argentine president Javier Milei has insisted he will 'act swiftly' to 'recover' the Falkland Islands, which he claims belong to Argentina by law and historical precedent Major oil companies have also been dissuaded from investing in recent years due to the geopolitical complications. The project is vulnerable to Argentine interference – as demonstrated yesterday when the share prices of the UK and Israeli companies leading the project fell following Mr Milei's statements.The Falkland Islands government, which approved exploration in 2024, will pocket 9 per cent of oil revenues, plus 26 per cent corporation tax on profits.Twenty-three wells will be built with the creation of 200 jobs at sea and on the islands. Oil workers will be helicoptered to the rigs and a major hotel will be built.The Argentine government has responded by announcing sanctions against Israeli oil company Navitas Petroleum, which has a 65 per cent share of the project, and UK exploration company Rockhopper, which has a 35 per cent share. Their stocks fell by 10 per cent in response to the move.Mr Milei's hostile remarks are not without precedent. When oil was struck in 2010, then Argentine president Cristina Fernandez de Kirchner called the British 'robbers' and introduced a law that any Argentine companies involved in the project would face criminal charges.She referred to the 'extraction of Argentine resources' and declared the country's claim to the Islands was 'inalienable'. She also took measures to isolate the Falklands economically.Jack Ford, chairman of the islands' legislative assembly, said the Sea Lion project 'presents enormous economic opportunities', adding: 'We're already seeing the benefit across parts of the UK in the creation of jobs, but the great benefit is to help provide economic security for the Falklands for generations to come.'A joint statement by Rockhopper and Navitas said: 'The partnership operates pursuant to valid petroleum licences lawfully granted to it by the Falkland Islands government, a self-governing UK Overseas Territory and with the full and ongoing support of the UK Government.'Tory energy spokesman Andrew Bowie said Argentina's claims should be rejected, adding: 'Of course it is right that the Falklands should be able to benefit from the riches in their waters. 'I just wish the UK Government would allow our domestic industry to do the same.'