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Falklands oil row: Argentina threatens legal action against UK over Sea Lion project, says ‘if within two weeks…’

Falklands oil row: Argentina threatens legal action against UK over Sea Lion project, says ‘if within two weeks…’

Milei gives UK 2 weeks to halt Falklands oil project, threatens international tribunal Photograph: (Combination image: AFP pics)

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Argentina has escalated its long-running Falklands dispute with the UK, giving London two weeks to halt the Sea Lion oil project or face international arbitration. Javier Milei says the offshore development amounts to unauthorised exploitation of resources claimed by Argentina.

Argentina's President Javier Milei on Monday (Sep 28) threatened to take the United Kingdom to an international tribunal over an offshore oil development near the Falkland Islands, escalating a long-running sovereignty dispute between Buenos Aires and London.

Taking to X, Milei said that he had instructed Argentina's Foreign Ministry and government legal teams to begin arbitration proceedings over the Sea Lion project in the North Falkland Basin, which Buenos Aires considers an unlawful exploitation of resources in territory it claims as its own. Argentina's presidency confirmed that the proceedings would be initiated under Annex VII of the UN Convention on the Law of the Sea.

“If within two weeks the United Kingdom does not stop the illegitimate exploitation, we will go to the International Tribunal for the Law of the Sea,” Milei wrote on X.

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What is the Sea Lion oil project?

Sea Lion is an offshore oil field located about 220 kilometres north of the Falkland Islands, known as the Malvinas in Argentina.

The project is operated by Israel's Navitas Petroleum, which holds a 65 per cent interest, while Britain's Rockhopper Exploration owns the remaining 35 per cent. The companies say they operate under petroleum licences granted by the Falkland Islands government.

Navitas says the project has received final investment approval and that first oil is planned for March 2028. The first phase involves 11 subsea wells connected to a floating production, storage and offloading vessel.

The companies have rejected Argentina's position and said their licences were lawfully issued by the Falkland Islands government with UK backing.

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Why Argentina is challenging the project

Buenos Aires argues that unilateral development of natural resources in the disputed territory violates UN resolutions calling on Argentina and Britain to avoid actions that could complicate efforts to resolve their sovereignty dispute.

Milei's government has already taken measures against companies and individuals linked to hydrocarbon activities around the Falklands. The latest move would take the dispute into international arbitration under the Law of the Sea Convention.

UK backs Falkland Islanders' right to develop resources

Britain maintains that the Falkland Islands are a British Overseas Territory and supports the islanders' right to develop their natural resources.

The UK government earlier said that the Falkland Islands have the right to develop hydrocarbons for their own economic benefit and that it fully supports companies conducting lawful business there.

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Moohita Kaur Garg

Moohita Kaur Garg is a journalist and Senior Sub-Editor at WION News with five years of experience covering the volatile intersections of geopolitics and global security. She has e...Read More