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Business

Argentine judge orders halt to Falklands oil project as tensions with Britain rise

ABC News Money ·
Argentine judge orders halt to Falklands oil project as tensions with Britain rise

An Argentine judge has ordered British and Israeli companies to stop developing an oilfield off the British-controlled Falkland Islands

BUENOS AIRES, Argentina -- An Argentine federal judge on Wednesday ordered British and Israeli companies to stop developing an oilfield off the Falkland Islands , opening a new legal front in the decades-old sovereignty dispute between Argentina and Britain that Argentine President Javier Milei has revived in recent weeks.

The injunction by Judge Mariel Borruto, a copy of which was obtained by The Associated Press, targets the Sea Lion oil project 220 kilometers (140 miles) north of the British-controlled archipelago in the South Atlantic, barring drilling, offshore installations and port construction until Argentine authorities can conduct an environmental review and issue a decision.

But in practice, Wednesday's order is unlikely to halt progress on the project. Judge Borruto acknowledged that enforcement “depends on international cooperation and the conduct” of the two companies, Israel's Navitas Petroleum and Britain's Rockhopper Exploration, which have already vowed to press ahead with the project despite Milei's threats of tougher sanctions against them and other companies operating around the islands.

Rockhopper declined to comment, and Navitas did not immediately respond to a request for comment on the injunction.

With its commercial oil production expected to start in 2028, Sea Lion has raised the stakes of a territorial dispute that led Britain and Argentina to a short and bloody war in 1982.

For the territory’s roughly 3,500 residents, the oilfield promises to transform an economy long dependent on fishing. For Argentina, which calls the islands the Malvinas, the project would allow foreign companies to extract oil riches it regards as its own. Its claim to the archipelago, roughly 480 kilometers (300 miles) off its coast, is enshrined in the constitution and woven into national identity , drawing support across the country’s political divisions.

U.S. President Donald Trump, a close ally of Argentina's radical libertarian leader, has brought new uncertainty to the dispute in recent weeks. Citing Britain’s lack of support for his war against Iran, he has suggested that Washington could change its historically neutral stance on the islands’ sovereignty.

Speaking to reporters in Dublin on Saturday , Trump again expressed skepticism that Britain would be able to retake the Falklands as it did after Argentina's military dictatorship invaded in 1982, saying, “I don’t know if they’re going to be willing to travel that far."

Milei seized on what he called “winds of change” following Trump’s comments earlier this month, using a Sept. 3 national address to announce measures against companies developing oilfields around the islands.

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