LONDON, UNITED KINGDOM — (Marketwire) — 03/27/12 — Nearly 30 years after the Falklands War, Argentina is once again asserting a claim against the UK over the hotly disputed set of islands in the South Atlantic. But what exactly is so important about the Falkland Islands and why is the British Government striving to retain this distant colony?
Also known as the Islas Malvinas, there are about 340 separate islands in the Falklands, which have been under British rule since 1833. There were 3,140 islanders recorded in 2008, the majority of which were citizens of British descent. Despite surrendering to the UK in the Falkland War of 1982, Argentina continues to claim the islands and includes them in its constitution.
Maintaining a colony so far from British shores may seem to be an anachronism from an empire long dead, but a recent discovery has meant the Falkland Islands could potentially have a key part to play in this country–s future – that discovery was oil. The South Atlantic basin surrounding the islands is thought to contain one of the world–s largest reserves of oil. The British Geological Survey have estimated that there could be as much as 60 billion barrels of crude oil waiting to be drilled in this small area, which can be converted into electricity and gas to heat our , power our appliances and run our cars.
When the Falkland Islands– oil reserves were first discovered in 1998, the price of oil was too low to justify any drilling attempts. Today, the price of oil is rising at a rapid rate and the energy industry is set on discovering new reserves and developing new drilling technologies. Speaking to the Guardian newspaper in 2010, Ben Romney, a Desire Petroleum spokesman, said: “With the rise in oil prices and the worldwide search for new oil and gas services, it has now become more than commercially viable for this work to begin.”
In February 2012, the Ocean Guardian rig arrived in the Falkland Islands and began drilling for hydrocarbon deposits. With potential riches waiting underneath the Islands, the contest between the UK and Argentina looks set to continue. Currently the isolated islanders will take a percentage of any oil discoveries and a royalty on each barrel sold, which could transform the face of one of the last vestiges of the British Empire.
Contacts:
Felicity Callaghan
+44 (0)7769 542 360