Argentina Initiates Sanctions Against 45 Companies and Individuals for Oil Activities in the Falkland Islands

The Argentine government announced that it has initiated sanction procedures against 45 natural and legal persons based on Law No. 26,659, on the grounds that they are conducting unauthorized oil exploration and production activities in the continental shelf surrounding the Falkland Islands. The Ministry of Foreign Affairs stated that these activities are contrary to United Nations General Assembly Resolutions 2065 and 31/49 and violate Argentina's sovereignty rights.

The sanction decision came hours after the final investment decision was made for the Sea Lion project, operated by a joint venture of Israel-based Navitas Petroleum (65%) and UK-based Rockhopper Exploration (35%). The project is located 220 km north of the islands at a depth of 450 meters; with 314 million barrels of proven/probable reserves and a targeted production of 50,000 barrels per day, first oil is planned for March 2028.

Rockhopper Exploration has been banned from operating in Argentina since 2012 for 20 years, while Navitas Petroleum received a similar sanction in 2022. The government aims to target the companies' partners and service providers through the new procedure. Argentina emphasizes that the islands and surrounding maritime areas belong to it "by history and law" and that the occupation deepens resource exploitation.