Argentina targets oil company operating in Falklands

Argentina moves against oil firm operating near Falklands

The Argentine government has said it will bring criminal charges against oil company Navitas Petroleum for operating in waters off the Falkland Islands.

The announcement came only days after Argentine President Javier Milei said he would impose sanctions on oil companies drilling in the British overseas territory in the south-west Atlantic Ocean.

Sovereignty over the archipelago remains contested between the UK and Argentina more than 40 years after a British military task force drove out Argentine forces that had invaded the territory in 1982.

The long-running dispute intensified last week, when Milei said in a speech to the nation that the "winds of change" favoured Argentina's claim to the Falklands.

Milei has previously faced criticism from Argentine veterans of the 1982 conflict for being "too soft" on the Falklands, which Argentines call Las Malvinas.

In his speech on Thursday evening local time, Milei repeated his government's position on the territory, saying "the Malvinas are Argentine, historically and legally... there's no debate about that."

The president called oil drilling in the archipelago a "clear and urgent danger" to Argentine sovereignty.

He also rejected the outcome of a 2013 referendum in which 99.8% of the islands' residents voted to keep the Falklands as a British oversees territory.

Milei said they were living on land that had been "usurped" by the British and therefore "have no legitimate right to self-determination".

The British government dismissed Milei's speech and said its position on the Falklands was "unwavering".

Any hopes that Milei's primetime address was a temporary departure, and that he would return to his earlier approach of strengthening diplomatic ties with the UK, were dashed on Monday when his office announced criminal charges against Navitas Petroleum, several of its subsidiaries and their executives.

Navitas, which is listed in Tel Aviv, owns a 65% stake in Sea Lion, an offshore oil project due to begin production in the North Falkland Basin in 2028.

The Sea Lion oilfield, about 130 miles (209 km) from the Falkland Islands, is estimated to contain 1.7 billion barrels of oil.

In Monday's statement, Milei said drilling in the area would breach Argentine law banning resource exploitation without approval from Argentine authorities.

"The state will continue to pursue actions deemed necessary to counter any act which breaches the sovereign rights of the Argentine Republic," the statement said.

Navitas has not yet replied to the latest statement, but said last week that Milei's comments 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, which holds a partial stake in the Sea Lion project, has also not yet commented on Milei's statement.

Both companies have previously said Sea Lion has valid licences from the Falkland Islands.