Falklands set to double GDP with oil boom despite Argentina’s threats

Britain has also urged Interpol to reject attempts by Buenos Aires to use the agency to arrest individuals involved in the Falklands oil industry.

Despite that continued Argentinian intimidation, the Falklands is an economic success story.

Even before the first oil is pumped next year, the Falklands economy is already self-sufficient.

The Falkland Islands Government has zero debt and the economy has one of the highest per capita GDP rates in the World.

The islands’ rapid economic success owes much to the creation of the Falklands Exclusive Economic Zone (EEZ) in the years after the 1982 war.

The zone extends out to 200 nautical miles around the archipelago, covering an area of more than 300,000 square miles.

That allows the islands to issue lucrative fishing licences for squid and finfish.

Fishing now accounts for 58 per cent of the Falklands’ GDP.

The licences alone bring in £36million annually, accounting for 30 per cent of the government’s entire budget.

Tourism is also growing steadily, as many thousands travel to the islands each year to witness its rugged beauty and see its rich and diverse wildlife.

But both these sectors are subject to regular harassment and intimidation by Argentina.

The Government in Buenos Aires often pressures neighbouring countries into taking action to deny cruise ships visiting the Falklands access to their ports.

The tiny number of air links to some of Argentina’s neighbours are also subject to pressure to withdraw the services.

The decision by UK Foreign Secretary Ed Miliband to give the go ahead for oil production off the Falklands will undoubtedly infuriate the Argentines.

The production of the first field alone, the Sea Lion field will yield up to 1.7 billion barrels of recoverable oil and will immediately double the islands’ GDP.

But the Sea Lion field is just one of multiple areas with the Falklands basin where oil and gas reserves are located.

Some estimates, the total amount of recoverable oil and gas as high as 60 billion barrels.

That figure is higher than the amount of oil and gas recovered from the North Sea over since production began more than four decades ago.

Despite the expected Argentinian backlash, Andrea Caulsen, Chief Executive of the Falkland Islands Government is unwavering.

She told GB News: “We are trying to make ourselves more resilient.

“We are an island community that relies on our natural resources.

“It is our right to exploit those resources and that’s what we wish to do, in peace, quietly, just to get on.”

As Buenos Aries threatens imminent international court action to halt oil production off the archipelago, British Government Ministers warn they will not stand by while Argentina uses economic coercion against the people of the Falklands.