Tension in the South Atlantic: Oil exploration in the Falkland Islands reignites historic territorial dispute between the United Kingdom and Argentina
Geopolitical tension in the South Atlantic is about to explode! The UK plans to extract more than 500 million barrels of oil from disputed Falkland Islands, territory claimed by Argentina since 1833. The exploration, led by the Israeli company Navitas Petroleum, promises to transform the local economy, but also reignites a historic conflict.
Discover how this new oil onslaught could change the destiny of a region and ignite an old sovereignty dispute!
How did the United Kingdom take the Falkland Islands from Argentina?
Oil rekindles rivalry between British and Argentines over Malvinas
A diplomatic crisis is brewing in the South Atlantic. The United Kingdom is seeking to extract more than 500 million barrels of oil from the Falkland Islands, a territory that Argentina considers occupied by the British since 1833.
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The site where the drilling will be carried out is known as the Sea Lion Field and is located 220 kilometers north of the Falkland Islands. The Israeli company Navitas Petroleum is responsible for its exploration and plans to extract 306,9 million barrels in 30 years, although the reserve is at least 514 million.
Operating profits will primarily go to the oil company's shareholders in Israel and the United States
Operating profits will primarily go to the oil company's shareholders in Israel and the United States, but they have the potential to also transform the local economy, based on fishing and sheep farming, through royalties and taxes.
An environmental impact assessment published by Nativas reveals the intention to initially build 23 wells at a depth of 2,5 kilometers. The island's government has called for a legal consultation period to find out whether Falkland Islanders support the new oil exploration plan. Your results will be known on August 5th.
While the Labor Party won the British election by a large majority, and intends to ban new oil drilling, decisions about drilling rights in the surrounding waters are the responsibility of the islands' local administration.
Javier Milei renews Argentina's claim to the sovereignty of the Malvinas Islands before the UN
Claim of sovereignty. Javier Milei's government renewed Argentina's claim to the sovereignty of the Falkland Islands before the UN. Added to this conflict is another diplomatic crisis: in 2023, the previous Argentine president, Alberto Fernández, sanctioned Navitas Petroleum, prohibiting it from operating in Argentine territory for the next 20 years.
Reaffirming Argentina's “legitimate and imprescriptible sovereign rights over this region, and that, with its position, the British government contradicts UN resolution 31/49. Argentina has not yet taken an official position on the new oil exploration, but is already analyzing possible diplomatic actions.
Remember the offshore project in the Falkland Islands
Last year, the Israeli company took 65% of the total package of shares that Rockhopper Exploration PLC owned in the northern basin of the Falkland Islands, which it had obtained in 2010 through a purchase from the British government. Navitas' publication includes the terms and conditions of the island's legislation and the company itself, which include environmental and supply matters.
Furthermore, it invited potential bidders to present themselves as local suppliers of goods and services, as long as they meet competitive requirements regarding quality, price and delivery time.
The policy launched by Navitas requests that local companies make expressions of interest and support for a series of infrastructure projects that “need to develop the extractive project”.
An example of this would be the renovation and consolidation of the access road to the temporary pier in Puerto Argentino, which would allow efficient and safe transit for activities in the coming years; and the redesign of such access to support two paths for an intense flow of trucks with heavy trailers.
In addition to the renovation – which includes increasing light and security levels – they seek to ensure access to the port's floating pier, remove floating material adjacent to the sector, and create dredging and a channel that allows for better maritime operations.
Operations in 2024 would reach oil production of 80 thousand barrels per day
The oil company's Penguin News publication called for all interested companies to submit their proposals, detailing the company's structure and ownership, as well as a summary of trades and experience relevant to marine construction and related operations.
The provisional plan has already taken public status, and envisages achieving 18 drillings in just 18 months, through a storage and offloading platform ship (FPSO), which would begin operations in 2024 and within 30 to 42 months thereafter would achieve production of oil of 80 thousand barrels per day.