Britain struck oil in the Falklands yesterday , a discovery likely to escalate already heightened tensions with Argentina over the ownership of the islands . Above , troops walk across the island in 1982 . Britain struck oil in the Falklands yesterday , a discovery likely to escalate already heightened tensions with Argentina over the ownership of the islands . After nine months of exploratory drilling , a group of British companies found oil and gas in a remote field north of the islands . The bonanza , which could be worth billions of pounds , will add to fears of renewed conflict over the British overseas territory just days after Defence Secretary Michael Fallon warned of a ‘ very live threat ’ from Argentina . The discovery at the Zebedee exploratory well comes amid worsening relations with Buenos Aires , exactly 33 years after Argentina invaded the islands . Lord West of Spithead , a former First Sea Lord , said last night the find would lead to further claims by the Argentinians over the long-disputed territory in the South Atlantic . ‘ The rhetoric and sabre-rattling from Argentina will grow , ’ he added . ‘ The Argentinians have always been worried we will find oil and , given their economic state , they will think , “ We should have it ” . ‘ We will have to be careful . The only way to stop them ( acting ) is to ensure we have sufficient military there . The rhetoric from Argentina will get worse . ' Argentina invaded the Falklands in 1982 , leading to a conflict that cost 260 British and 650 Argentine lives . The South American state still claims territorial rights to the islands . Britain pledged last week to invest £180million over the next ten years to defend the islands , with an upgrade of a surface-to-air missile system and the deployment of two Chinook helicopters . The commitment came after it was revealed earlier this year that Russia could be helping to re-arm Argentina . Scroll down for video . Yesterday ’ s discovery , which could yield 100 million barrels of oil , was announced by the British firms that share the exploration area , Premier Oil , Rockhopper Exploration and Falkland Oil & Gas . Malcolm Graham-Wood , an oil industry expert and founder of the consultancy HydroCarbon Capital , said : ‘ This is good for Britain , good for British oil companies , good for taxes and good for the industry. ’ The latest incident sees a heightening of tensions between Argentina and Britain over the Falklands . Pictured is the bombing of the Sir Galahad Troop Carrier , after it was hit by a missile . A map shows the oil has been discovered 130 north of the island by British companies at the Zebedee oil well . Samuel Moody , chief executive of Rockhopper , which is named after the southern rockhopper penguins found on the islands , said : ‘ This is a fantastic start to the 2015 Falklands drilling campaign and provides early proof of the significant remaining potential of the North Falkland Basin. ’ Shares in the oil-exploration companies initially soared to double digits after the discovery was announced . The row over the sovereignty of the islands , which Argentina calls Malvinas , could be intensified by the oil find . However , Mr Graham-Wood said : ‘ Oil is always found in difficult places , geographically and politically – look at Alaska , for instance – but that has never worried the oil industry. ’ Oil expert Charlie Sharp , of the investment bank Canaccord Genuity , said the Zebedee discovery was ‘ an excellent start to the exploration campaign ’ . It follows another made nearby in 2012 through a project called Sea Lion , but the price of oil has halved since June , forcing many explorers to cut back on spending . Experts also predict future finds could be even more significant . Stephane Foucaud , oil analyst at First Energy , said the latest discovery is ‘ encouraging news ’ , but another well – called Isobel Deep , 15 miles to the south – is the ‘ most important ’ in the area . War veterans sing the national anthem and hold the Argentinian flag during a ceremony marking the 33rd anniversary of the start of the Falklands War . Argentina has now written to the UN about British 'aggression ' Mr Fallon said last week that existing defences in the Falklands would be modernised , with investment in ‘ ageing infrastructure ’ and an upgrade of the surface-to-air missile system . It came after news that Russian president Vladimir Putin was reportedly working on a deal to lease 12 Sukhoi Su-24 bombers to Argentina . Intelligence chiefs warned that Argentina could land forces on a remote island , and that commanders needed support helicopters to enable infantry to react to any threat .
British companies found oil and gas in a remote field north of the airport . Comes days after minister complained of ' very live oil ' from Argentina .