Argentina and the UK once fought a war over the Falkland Islands. Now the multibillion-dollar Sea Lion oil project has reignited old tensions, with Buenos Aires seeking to put a stop to the plans.
Argentine President Javier Milei on Monday threatened to sue the UK over the Sea Lion oil project near the disputed Falkland Islands. Argentina claims sovereignty over the British-administered territory, where a 1982 war killed 255 British and 649 Argentine troops. Developers Navitas and Rockhopper say they hold valid British-issued exploration licences.
The decision of the Government of the Malvinas Islands, under British administration, to extend for five years the oil exploration permits put energy resources back at the centre of the sovereignty dispute with Argentina, just as the Government of Javier Milei has moved from diplomatic protest to a legal offensive against the companies involved and is preparing a law to extend the sanctions. The development of Sea Lion, which plans to start producing crude oil in 2028, thus turns a long-term territorial dispute into a conflict with business consequences.