The Falklands Islands is set to open its first oil field 15 years after it was discovered. Oil could be flowing from as early as 2028 under plans developed by its operator Navitas Petroleum, who is leading the £1.3billion project.

The Israeli company recently told investors that it was in the final stages of its plan to extract oil from Sea Lion Field on the British Overseas Territory with the final hurdle being approval from the Falklands government. In a note to investors, the company said it had now won approval “in principle” from the Falkland Islands government and was working to get final approval for its plans. The Falklands Islands government has said that it is keen to tap into the benefits oil production could bring.

A spokesman said extracting the oil was “a political and community priority for the Falkland Islands”.

They added: “If a hydrocarbons industry is successfully established, it will provide transformative opportunities for the people of the Falkland Islands, leading to financial and political security.”

If given the go-ahead, Navitas is believed to be planning to transfer its Aoka Mizu floating production vessel from Shetland to the Falklands to begin exploration.

It is hoped that the Aoka Mizu will drill as many as 23 wells in the first stage of its development.

It is estimated that islanders could unlock a windfall equivalent to £1million per person once drilling commences.

According to Navitas documents, the oil and gas at Sea Lion lie about 1.6 miles beneath the sea bed, in water depths of almost 1,500 feet.

The British territory, which has been held by the UK since 1883, has long been subjected to sovereignty claims by Argentina.

An Argentine invasion of the island in 1982 led to the Falklands War which saw the British reclaim the territory in 74 days at a cost of 255 British lives, seven ships and nine aircraft.

Argentina continues to lay claim to the islands, which it calls Las Malvinas, with President Javier Milei recently using his speech at the UN General Assembly to reiterate his country’s claims.

Addressing global leaders, Mr Milei declared: “I wish to reiterate our legitimate claim in terms of sovereignty over the Malvinas and the surrounding maritime areas that continue to be illegally occupied. 

“In spite of the fact that 80 years have elapsed since the creation of the UN, colonial situations such as this one remain unresolved. 

“For this reason, we call on the United Kingdom to resume bilateral negotiations.”