Companies developing offshore oil in the North Falkland Basin now face immediate legal exposure after Argentina announced criminal charges against Navitas Petroleum, several subsidiaries and company executives for operating in waters around the islands.
The move followed a primetime address from President Javier Milei, who reiterated Argentina's claim to the Falklands, calling them Argentine "historically and legally" and describing drilling in the area as a "clear and urgent danger" to national sovereignty. In the speech he rejected the 2013 referendum in which 99.8% of island residents voted to remain a British overseas territory, saying those residents live on land he called "usurped" and therefore "have no legitimate right to self-determination."
Buenos Aires' presidential office said that any extraction without Argentine approval would breach domestic law that bans exploiting resources outside national authorisation. The statement added, "The state will continue to pursue actions deemed necessary to counter any act which breaches the sovereign rights of the Argentine Republic."
Navitas, which lists in Tel Aviv, holds a 65% stake in the Sea Lion project in the North Falkland Basin. Sea Lion lies roughly 130 miles, 209 km, from the Falkland Islands, carries an estimated 1.7 billion barrels of oil and is scheduled to start production in 2028. Navitas has not responded to Buenos Aires' latest announcement, though last week the company said Milei's remarks were "not expected to have a material effect on the development activities of the Sea Lion Project, including the timetable for completion of the Project's development." Rockhopper, another Sea Lion partner, had not commented on the prosecution notice.
London rejected Milei's speech and reaffirmed its position on the islands as "unwavering." Argentine veterans of the 1982 conflict, who previously criticised Milei for being "too soft" on the Falklands, have been cited in public debate as the president's rhetoric hardens.
The prosecution intensifies an already delicate diplomatic dispute, increasing legal and reputational pressure on firms working in the basin. The likely next steps are formal filings and legal manoeuvres in Argentine courts while companies insist they hold licences from Falkland authorities and say development plans remain on track. That clash of jurisdictions leaves the Sea Lion project embroiled in a contest that could complicate financing, timelines and international relations as both sides pursue their legal and political strategies.
