Why did offshore oil exploration begin near the Falkland Islands?

Offshore oil exploration began near the Falkland Islands following seismic studies conducted in the early 1990s that suggested the presence of oil reserves in the surrounding waters.1

In response to these findings, the local government granted licenses to foreign companies to begin exploration efforts as part of a broader initiative to diversify the islands' economy, which had historically relied heavily on sheep farming and wool production.1