Argentina lodges legal claim against UK's Falklands oil exploration

ByAngus Thompson and James Landale, Diplomatic correspondent.

Key points

• The Sea Lion oilfield, around 130 miles (209 km) from the Falkland Islands, contains an estimated 1.7 billion barrels of oil.
• Two oil firms – Britain's Rockhopper Exploration and Israel's Navitas Petroleum – have insisted they have valid licences issued by Britain.
• Despite its defeat in 1982, Argentina has always maintained its right to the Falkland Islands.
• The claim comes a fortnight after Argentinian President Javier Milei demanded the scrapping of the Sea Lion oilfield project, a joint venture between Israeli and British firms.
• While announcing new protections for them, UK Foreign Office minister Uma Kumaran criticised the "escalating campaign" from Argentina against firms operating in the Falklands.

Meanwhile, the Argentinian administration has begun legal action seeking to stop the exploration of oil and gas fields north of the Falkland Islands in an escalating row with the UK.

Buenos Aires remarked in an official note the request lodged with the International Tribunal for the Law of the Sea aimed to block activity authorised "illegally" by the UK.

Notably, the claim comes a fortnight after Argentinian President Javier Milei demanded the scrapping of the Sea Lion oilfield project, a joint venture between Israeli and British firms.

Notably, the developments heighten tensions between the UK and Argentina over the sovereignty of the self-governing British territory, known in Argentina as Las Malvinas, more than 40 years after a British military task force ejected Argentinian forces which had invaded the territory.

Earlier last month Milei additionally threatened to impose economic sanctions on firms exploiting oil close to the Falkland Islands.

Uma Kumaran accused the Argentinian administration of "economic coercion" against the residents of the Falkland Islands.

"We will do whatever it takes to support them, " she informed the House of Commons on Tuesday.

In practice, the Sea Lion oilfield, around 130 miles (209 km) from the Falkland Islands, contains an estimated 1.7 billion barrels of oil.

For context, the Falkland Islands administration extended exploration licences last month and the field is anticipated to start pumping in 2028, potentially generating massive revenues for the roughly 3, 500 inhabitants of the islands.

For context, the Argentinian administration claims the marine environment of disputed maritime areas is protected by international law.

Its application "seeks to preserve Argentina's sovereign rights over its continental shelf and prevent activities authorised unilaterally and illegally by the United Kingdom".

In a post on X, Argentinian Foreign Affairs Minister Pablo Quirno remarked the administration was requesting the tribunal create a number of orders against the UK, including halting new exploration permits.

But the UK administration insists Sea Lion is lawful, located on the Falkland Islands shelf and regulated by the islands' administration.

While the Falkland Islands administration grants exploration licences, they must be signed off by the UK Foreign Secretary.

Kumaran remarked the tribunal application "does not invalidate licenses issued by the Falkland Islands government, alter the islands' regulatory authority, or require lawful hydrocarbon development activities to cease".

Meanwhile, the tribunal that will consider the dispute is an independent judicial body based in Hamburg which is responsible for the fair application of the United Nations' Convention on the Law of the Sea.

FCDO authorities have produced clear the UK will engage with the tribunal but resist Argentina's claim firmly.

They remarked the aim was not to escalate the dispute but respond firmly to Argentina's latest move, and defend what the UK sees as legitimate economic activity.

They additionally hope to provide reassurance to businesses fearful of Argentine retribution. That is why they are introducing measures under the Protection of Trading Interests Act that would protect firms from any extra-territorial impact of Argentine laws after Milei's sanctions threats.

Foreign Secretary Ed Miliband remarked: "Argentina's attempts to intimidate businesses and individuals engaged in legitimate commercial activity are unacceptable. Firms should be free to produce lawful commercial decisions without the threat of political coercion."

For context, the latest move comes after Milei roundly criticised the UN in his speech at the General Assembly late last month for failing to act over the sovereignty of the Falkland Islands.

He remarked the UN had become "a useless organisation" which only serves "arrogant parasites dressed up as well-intentioned bureaucrats". On Tuesday Kumaran described Milei's remarks at New York as "inflammatory".

Despite its defeat in 1982, Argentina has always maintained its right to the Falkland Islands. But over the years successive governments have pressed their claim with varying degrees of aggression and diplomacy.

UK authorities believes the current Argentine leadership is deliberately picking a fight ahead of elections next year.

For now, argentina lodges legal claim against UK' s Falklands oil exploration remains the part of the story worth watching, and further updates are likely as more details are confirmed.