Oil wealth may prompt Argentina to step up pressure on the U.K., which first settled the islands in 1766, to resume talks over sovereignty. President Cristina Fernandez de Kirchner has said the Falklands’ status perpetuates colonialism.

The U.K. rejects Argentina’s claim. A referendum last month saw all but four Falkland citizens vote in favor of staying British, three decades after Argentina invaded and Margaret Thatcher went to war to retake the territory.

Fernandez asked her countryman Pope Francis to help persuade the U.K. to open talks on sovereignty of the islands, a day before he became the 266th bishop of Rome.

Foreign Minister Hector Timerman said yesterday that the Falklands referendum was illegal and wasn’t recognized by the United Nations. The U.K. rejected an offer by Secretary General Ban Ki-moon to mediate on the dispute.

Sea Lion contains about 400 million barrels of oil, according to Rockhopper Exploration Plc, the explorer that made the discovery three years ago. Premier Oil Plc, a U.K. oil company, agreed to take over operating the field last year with a $1 billion investment. Premier expects spending up until first oil, still four years away, to be about $3 billion.

Rockhopper rose 0.7 percent to close at 152.8 pence as London today. Premier gained 0.2 percent to 394.8 pence.

Tax Regime

Based on the Falkland’s tax regime, which gives the local government 33 percent take from corporation taxes and production royalties, the islands can expect to receive $3.9 billion in royalties and $6.6 billion in tax revenue over the life of the field, according to Edison Investment Research, a consultant. That equates to about $4 million per islander, or $160,000 per person a year over the 25-year life of the field.

Those figures may increase further if more oil is found around Sea Lion or if gas finds to the southeast of the islands drilled last year are deemed to be commercial. Falkland Oil & Gas Ltd. sold part of its assets to U.S. producer Noble Energy Inc. and Italy’s Edison SpA, a unit Electricite de France SA that’s unrelated to Edison Investment Research. Borders & Southern Petroleum Plc said in January that its Darwin prospect probably holds 210 million barrels of condensate, a light crude associated with gas production.

Strong Potential