Britain vows to protect firms from Argentine threats as Falklands oil row explodes

Britain has vowed to defend businesses from Argentinean interference amid reports that Ed Miliband has approved a giant Falkland Islands oil field.

The Foreign Secretary is said to have approved the Sea Lion field, 130 miles north of the islands. It is believed to contain up to 1.7 billion barrels of oil.

Britain's Rockhopper Exploration and Israel's Navitas Petroleum are due to begin extracting from the field within two years.

But the plans have angered Argentina, which still claims sovereignty over the islands. In a growing diplomatic row, its president, Javier Milei, vowed to stop the oil project, which he claims is “plundering” Argentine resources.

Last month he threatened sanctions to halt Sea Lion, the islands’ first major offshore oil development.

Argentina has even asked Interpol to detain executives involved in Sea Lion. The UK has responded by asking Interpol to reject the requests, which it claims are politically motivated.

Buenos Aries has now filed a request with the International Tribunal for the Law of the Sea, seeking to halt further work.

The request "seeks to preserve Argentina's sovereign rights over its continental shelf and prevent activities authorized unilaterally and illegally by the United Kingdom," the Government said.

But the British Government hit back, vowing to protect companies from the “attempts by Argentina to coerce businesses engaged in lawful activity”.

It is preparing steps under Protection of Trading Interests legislation that “will protect businesses from pressure to comply with Argentine domestic measures”.

They will ensure that legal business in the Falkland Islands can “make commercial decisions in accordance with UK law”, the Government said, “underlining that the UK won’t hesitate to protect UK businesses and individuals”.

Business Secretary Jonathan Reynolds said: “This makes it clear in no uncertain terms - that this Government will act where Argentina seeks to impede lawful UK commercial activity.

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“We will introduce measures under the Protection of Trading Interests (PTI) legislation to protect UK interests and continue to engage closely with affected businesses.

“These steps send a clear signal that we will not stand by while Argentina seeks to apply their domestic legislation to impede legitimate commercial interests in the Falkland Islands.”

Mr Miliband said: “The UK’s support for the Falkland Islands is steadfast.

“Argentina’s attempts to intimidate businesses and individuals engaged in legitimate commercial activity are unacceptable. Companies should be free to make lawful commercial decisions without the threat of political coercion.

“We will always stand up for the Falkland Islanders, their right to determine their own future, and their right to pursue legitimate economic development.”

The Government repeated its support for the islands’ right to self-determination and said it was “engaging closely with affected businesses to offer support”.

The islands are self-governing and the UK Government has said oil exploration is a matter for Falklanders.

“They have the right to develop their natural resources as they see fit,” said overseas territories minister, Uma Kumaran, last month.

But the Governor must still seek the consent of the UK Foreign Secretary for the oil field. The Telegraph reported that this has now been given. GB News has contacted the Foreign Office for confirmation.

Although the decision is independent of UK energy policy, Mr Miliband’s involvement has invited comparisons to the North Sea, where two major sites – Rosebank and Jackdaw – remain in limbo after a legal challenge on climate grounds.

Mr Miliband was energy secretary from July 2024 until July this year.

Shadow energy secretary, Andrew Bowie, welcomed the Falkland news but asked why the future of the North Sea sites remained undecided.

He said: “The utter hypocrisy of Ed Miliband knows no end.

“Yes, this is a very welcome decision but it does beg the question, why does Labour think drilling for oil and gas off the Falkland Islands is okay but not in our North Sea?

“Labour have no excuse for not backing Jackdaw and Rosebank.”

Reform deputy leader and energy spokesman, Richard Tice, who has long backed North Sea exploration, posted on X: “Drill, Falklands, Drill.”

GB News Home and Security Editor, Mark White, has been reporting from the islands in the wake of the Argentine threats.

Defence sources have told him that Britain could protect the islands from any Argentinian military action.

The British military presence on the islands could be rapidly reinforced through the Mount Pleasant airbase in the event of any heightened threat, the source explained.

It comes as Argentina once again builds up its armed forces, buying combat jets and helicopters

The Falklands war in 1982 started after Argentinean soldiers landed on the islands. The 74 day conflict led to the deaths of 255 British troops and 649 Argentines. It ended with an Argentine surrender.