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 islands .
Comes days after minister warned of 'very live threat' from Argentina .