Falkland Islands

Fresh Falklands oil find threatens to stoke tensions with Argentina

Tensions with Argentina are likely to remain further strained after a significant oil find off the Falkland Islands.

British company Rockhopper Exploration says a new discovery means it expects to start pumping oil by 2016 but will need £1.3 billion to develop the field.

It estimates there are 350 million barrels of recoverable oil in the field, sufficient to turn the islands into a significant oil production centre, with production peaking by 2018.

The search for oil has angered Argentina, which claims sovereignty over the islands it calls Las Malvinas. Argentina invaded the Falklands in 1982 before being defeated by Britain.