Oil companies on track to produce crude oil at the Sea Lion field (Image: Getty)
A public consultation has been approved by Falkland Island residents for offshore oil exploitations just north of the archipelago, yet Argentina remains furious.
Oil companies have long aimed to produce crude oil at the Sea Lion field just 220 kilometers from the Islands. Israeli company Navitas and the British Rockhopper Exploration are in charge of the project and plan to start production in 2027.
However, Argentina has previously expressed its fury and concerns over the project, disputing it as an illegal resource in a contested maritime zone, perceiving it as a sovereignty threat.
The Falkland Islands’ Department of Mineral Resources stated that after addressing public concerns about the project and receiving responses from the oil companies, “no further public consultation is needed,” according to the oil companies.
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Javier Milei, President of Argentina (Image: Getty)
The government now awaits approval of the development and production schedule from current island authorities.
Rockhopper said in a statement: “In November, the Falkland Islands government confirmed that after receiving several comments, no additional public consultation was required.”
The two oil companies had initially planned to make the final investment decision in December, but due to awaiting environmental clearances, they have indicated it will be made in mid 2025 instead.
The goal is to begin the first phase of crude production in 2027, estimating between 55,000 and 80,000 barrels per day (bpd) – this amounts to about 10% of Argentina’s current oil production.
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The British company holds 35% of the Sea Lion project while Israeli Navitas holds the remaining 65%. The project’s total development will cost a whopping $1.4 billion (£1.1bn), with plans to drill 22 wells across a seabed spanning 500 metres deep.
If not halted by Argentina’s sovereignty claims over the islands, Sea Lion will operate with a vessel processing and storing crude at sea, with other ships transporting it to various global markets.
However the move is now likely to magnify tensions between Britain and Argentina. The topic of the islands sovereignty has remained highly controversial with Argentinian forces invading the British overseas territory of the Falkland Islands in 1982, claiming the land belongs to them.