Argentina begins sanctions proceedings against 45 people and companies over Falklands oil activities

Argentina has begun sanction proceedings against 45 people and companies accused of possibly violating Argentine law through activities linked to hydrocarbon exploration and production in the Falkland Islands, which Argentina claims and Britain controls.

The Foreign Ministry acted on instructions from President Javier Milei after he signed a decree intended to accelerate enforcement of Law 26.659. The legislation, approved in 2011, penalizes companies that explore for or extract hydrocarbons on Argentina’s continental shelf without authorization. It also applies to people and businesses that participate directly or indirectly or provide services to those projects.

A government statement said the proceedings would target not only companies allegedly carrying out hydrocarbon activities but also people and businesses providing services that enable them to operate. Argentina previously used the law against British oil company Rockhopper in 2013 and Israeli company Navitas in 2022. Both were partners in the Sea Lion project, located about 220 kilometers north of the Falkland Islands, and both were barred from operating in Argentina for 20 years.

Navitas operates Sea Lion, which remains in an early development phase. The companies announced their final investment decision at the end of 2025 and aim to begin extracting crude in March 2028.

Milei’s government again asserted Argentina’s sovereignty over the Falkland Islands, South Georgia and the South Sandwich Islands, along with their maritime and island areas. The decree also establishes mechanisms for public agencies to immediately report companies conducting activities in the Falklands without Argentine authorization.

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The Falkland Islands, South Georgia and the South Sandwich Islands and their corresponding maritime and island areas are Argentine. By history and by right. There is no discussion. They are Argentine and will remain so regardless of who occupies them.