Falkland Islands at war… with Labour! British territory is likely to benefit from the huge oil discovery, but the government will not provide financial support due to climate commitments

The discovery of a giant oil field in the Falkland Islands has become even more promising as the islanders are keen to capitalize on the value of their natural resources despite the British government’s war on fossil fuels.

The Sea Lion oil field, first discovered in 2010 in the North Falkland Basin, about 140 miles offshore, was hailed at the time as possibly the largest discovery of its kind since North Sea Oil.

But an updated report conducted in October by a leading energy analysis firm estimated that some 917 million barrels of oil could be recovered from Sea Lion – roughly twice the annual production of the entire North Sea.

Rockhopper Exploration, the company leading the development, now plans to extract 532 million barrels – a significant increase from the previous estimate of 312 million, which could lead to a potentially huge economic boon for the British Overseas Territory.

The Falkland Islands Government (FIG) gave the green light to sea lion exploitation earlier this year after a consultation with its approximately 3,500 residents reportedly received widespread support.

A final decision on the continuation of drilling is expected next year, with the first exploration of the field expected as early as 2027.

But the plans are a major thorn in the side of Sir Keir Starmer’s Labor government, which banned the issuing of new drilling permits to oil and gas companies keen to exploit the North Sea, days after taking office in July.

Labor is also aiming to reduce carbon emissions by at least 68% by 2030, compared to the 1990 baseline, as part of a wider target to reach net zero carbon emissions by 2050.

As a result, the government will not provide any financial support to the Falklands plan, after Foreign Secretary David Lammy stated in September: ‘Action on the climate and nature crisis will be at the heart of everything the Foreign Office does .’

An updated report this year estimates that around 917 million barrels of oil could be extracted from Sea Lion – about twice the annual production of the entire North Sea.

The Falklands remains one of the few areas that refused to sign the Paris Climate Agreement

The Falkland Islands are a British Overseas Territory and Britain is responsible for its involvement in foreign affairs and for its defence.

But power over the administration of the island’s internal affairs has been transferred to the FIG, so Westminster has no say in internal affairs.

A statement from an FIG spokesperson said: ‘The issue of developing the natural resources of the Falkland Islands is a devolved matter and it is for the people of the Falkland Islands to decide.

‘Given Britain’s robust and continued support for upholding Falkland Islanders’ right to determine their own future, we would expect this to extend to our freedom to choose whether or not to develop a hydrocarbon industry , taking into account all appropriate checks and balances.’

The Falklands remains one of the few areas that refused to sign the Paris Agreement – ​​a treaty setting out action on climate change to which more than 190 countries, as well as the European Union, are signatories.

A spokesperson for the Ministry of Foreign Affairs has now told the newspaper Telegraph“As the Secretary of State set out in his speech on the climate crisis, we are resetting the UK’s approach to climate and nature by quickly finding new, more efficient ways to reduce emissions,” he said.

‘Since 2001, Britain has stopped providing financial support to the fossil energy sector, including in its overseas territories.

‘The natural resources of all British Overseas Territories belong to their individual territories. The exploration of natural resources in the Falkland Islands is a matter for the Falkland Islands Government and the private companies involved.”

The diplomatic tensions over the development of the Sea Lion field come as Britain’s domestic debate over fossil fuels and the clean energy transition rages.

The British government under Prime Minister Keir Starmer is charting a dramatically different course from the Falklands, attempting to phase out fossil fuels and boost renewable energy production.

As part of the ambitious path to reduce carbon emissions by at least 68% by 2030, Energy Minister Ed Miliband has spearheaded policies to redirect investment from the oil and gas sector towards sustainable energy projects, with a particular emphasis on solar and wind energy.

The Labor government has also promised substantial funding for Great British Energy, a planned state-owned clean energy company.

A general view of oilfield platforms in the North Sea

Labour’s plan to decarbonise the energy network by 2030 could mean households having to ration their electricity use (file photo)

A worker in National Grid’s control room in Sindlesham, Berkshire. A new report suggests households may have to unplug or stop using household appliances if renewable energy runs out

A report released earlier this month by the National Energy System Operator (NESO) said Labour’s ambitious 2030 climate targets are achievable, but at significant costs.

Energy Secretary Miliband has touted the report as “conclusive evidence” that Labour’s plan to make Britain a “clean energy superpower” is the right thing to do. defending the march toward renewable energy by stating, “Clean energy we produce at home is cheaper than fossil fuels and safer because dictators cannot control it.”

But the uncompromising stance has sparked a backlash from fossil fuel companies, union leaders and politicians representing oil-dependent regions, especially in Scotland.

According to the report, Britain would need to invest around £40 billion annually by the end of this decade, which will be passed on to taxpayers in the form of higher bills.

Meanwhile, consumers should reduce their energy consumption during peak times.

The report also says that a massive expansion of rural and offshore wind turbines and solar panel fields is needed.

About 4,500 km of submarine cables will need to be installed, along with 1,000 km of new power lines, including pylons – doubling the total installed in the past decade.