Argentine President Javier Milei has said he will sanction oil companies drilling around the Falkland Islands, in a move aimed at the Navitas Petroleum-operated Sea Lion project.
Announcing the plan in a televised address on 3 September, flanked by his cabinet at the presidential palace, Milei said he would send Congress an urgent “national sovereignty defence” bill. He reiterated that the archipelago, which Argentina calls Las Malvinas, was “historically and legally” Argentinean.
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Under the proposal, penalties for operating around the islands without Argentine authorisation would be increased and suppliers would be brought within the scope of sanctions. The legal framework would also be widened to cover further activities affecting the country’s natural resources, reported Reuters.
Milei said Argentina would pursue penalties not only against the companies involved but also against their shareholders, directors and suppliers.
Argentine law already permits restrictions on oil companies taking part in projects on the islands that are deemed to be unauthorised, and it is not yet clear how, or to what extent, the new measures would be applied, reported the BBC.
Milei described the prospect of two companies developing Sea Lion as an urgent threat to Argentine interests and a “clear and present danger”, adding that the “winds of change” favoured his country’s claim.
Sea Lion sits roughly 220km north of the islands, in production licences PL032 and PL004b. The project is operated by Tel Aviv-listed Navitas Petroleum, while London-listed Rockhopper Exploration holds a 35% interest.
Navitas Petroleum Development and Production (NPDP), the group’s UK subsidiary, and Rockhopper have taken a final investment decision (FID) on the Sea Lion Northern Development, securing the approvals and funding needed for full-scale execution.
First oil is planned for March 2028 and development work could begin in the coming months.
The operator is pursuing a staged development. Phase one involves drilling 11 subsea wells tied back to a redeployed floating production, storage and offloading vessel, with phase two starting about three years after first oil and adding 12 further subsea wells.
Production is expected to run for more than 30 years, with activities managed from NPDP offices in London, Aberdeen and Stanley.
Rockhopper describes Sea Lion as a world-scale resource base of 1.7 billion barrels of oil, an amount sufficient to meet global oil demand for 17 days. By comparison, the Rosebank field west of Shetland holds an estimated 300 million barrels.
Downing Street restated the UK position on Friday, saying the islands would remain a British Overseas Territory “for as long as the Islanders wish”.
It added: “This is not the first time Argentine governments have made economic threats against the islanders. We are clear that the Falkland Islanders’ right of self-determination extends to the right to exploit their own natural resources.”
In a 2013 referendum, 99.8% of residents voted to retain that status, with three voting against.
UK Defence Secretary Wes Streeting wrote on X: “Milei’s statement overnight tells us more about domestic politics in Argentina than it does about the Falkland Islands,” adding that Britain’s commitment to the Falklands was “absolute and unshakeable”.
Milei’s harder line follows comments by US President Donald Trump that he was reviewing Washington’s neutral position on the islands. Trump told GB News on 3 September that he was unsure whether Britain would fight for the territory again, saying: “I just don’t know if you (Britain) have the capacity to do that.”
