Diplomatic crisis on the way: Falkland Islands hold 500 million barrels of oil and UK wants to approve extraction

(MSN) A diplomatic crisis is imminent in the South Atlantic 500 million barrels of oil Falkland Islands (Malvinas to Argentina). The territory is a matter of dispute between the two countries, as it is legally considered British, but Argentina claims it for itself and accuses it of British invasion since 1833. Brazil supports South Americans in their struggle for sovereignty.

The drilling site is called the Sea Lion Field and is 220 kilometers north of the Falkland Islands. Israeli company Navitas Petroleum is in charge of exploration and plans to extract 306.9 million barrels over 30 years, although reserves are at least 514 million.

Profits from exploration go mainly to oil company shareholders in Israel and the US, but royalties and taxes have the potential to transform local economies based on fishing and sheep farming.

Malvinas or Falklands: Argentina seeks sovereignty over territory considered British

An environmental impact study published by Navidas reveals the intention to initially drill 23 wells at a depth of 2.5 km. The island’s government has called for a legal consultation to see if residents of the Falkland Islands support new oil exploration plans. Results will be known on 5th August.

Although Labor won the British elections with a large majority and intended to ban new oil drilling, decisions on drilling rights in the surrounding waters are the responsibility of the islands’ local administrations. Argentina claims sovereignty

Javier Millay’s government renewed Argentina’s claim to sovereignty over the Falkland Islands before the UN. Another diplomatic crisis was added to this conflict: in 2023, Alberto Fernandez, the president of Argentina, banned Navitas Petroleum from operating in Argentine territory for the next 20 years.

According to the Argentine newspaper La Nacion (on July 2, 2024), Argentina has not yet officially taken a position on this new oil exploration, but is already exploring possible diplomatic steps.