Argentina Threatens UK With International Arbitration Over Oil Project

President Javier Milei has given the United Kingdom two weeks to halt the Sea Lion offshore oil project near the disputed Falkland Islands, or Argentina will initiate international arbitration. Milei announced that Argentina intends to petition the International Tribunal for the Law of the Sea in Hamburg to order a temporary stop to the project, which is being developed by Navitas Petroleum and Rockhopper Exploration.

Argentina accuses the UK of illegally plundering natural resources and causing irreversible harm to its sovereign rights. The legal challenge relies on United Nations General Assembly Resolutions 2065 and 31/49, which urge both nations to avoid unilateral changes to the situation. Beyond the tribunal, Milei has threatened sanctions to bar involved companies from Argentina's oil and mining sectors and proposed legislation that could impose prison terms of up to 20 years for unauthorized resource extraction. The government is currently investigating at least 60 companies and executives.

Simultaneously, Argentina is pursuing legal complaints against Thales UK Limited for allegedly conducting unauthorized aircraft operations between the islands and Punta Arenas, Chile. The UK rejects these claims, maintaining that the islanders have the right to develop their own resources, citing a 2013 referendum in which residents voted to remain a British overseas territory. Oil production at the Sea Lion field is expected to begin in 2028.