See more Daily Mail on Google - save us as a Preferred SourceBy MARK NICOL, DEFENCE EDITOR Published: 23:22 BST, 4 September 2026 | Updated: 10:33 BST, 5 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 900million 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
