Buenos Aires has escalated its long-running dispute over the Falkland Islands by filing criminal charges against several subsidiaries of the Israeli oil company Navitas, accusing them of operating without Argentine authorization in the waters around the archipelago. The complaint, announced on Monday, targets Navitas Petroleum Development & Production Ltd, Navitas Petroleum Atlantic United, Navitas Petroleum LP, JHI Associates Inc, and Eco Atlantic Oil & Gas Ltd, along with their executives and representatives.
The Argentine presidency argues that these companies hold exploration and production licences granted by what it calls the “illegitimate government of the United Kingdom” in the North Falkland Basin, in violation of Argentine law. The case also names directors, managers, statutory auditors, and any representatives involved in the project. This is not the first such action: Buenos Aires declared the operations illegal in 2012, filed a similar complaint in 2015, and sanctioned Navitas directly in 2022. In December 2025, President Javier Milei's government formally rejected the investors' announcement of a €1.808 billion investment to begin production.
Sea Lion project at the heart of the dispute
The Sea Lion oilfield, located roughly 220 kilometres north of the Falklands, is the focal point. Navitas operates and holds a 65% stake, while its British partner Rockhopper owns the remaining 35%. The project is in its development phase, with first crude expected by March 2028. The two companies issued a joint statement after Milei's recent speech, insisting they operate under licences “legally granted” by the islands' government and with the “full and ongoing support” of the United Kingdom. They also said they do not expect the Argentine measures to delay the project timeline. Rockhopper's shares fell more than 6% on the London Stock Exchange following the announcement.
The criminal complaint comes amid rising diplomatic tension between Israel and the United Kingdom. Israel's Minister for National Security, Itamar Ben Gvir, has called on Prime Minister Benjamin Netanyahu to recognise Argentine sovereignty over the Falklands and to impose sanctions on London “for as long as the occupation continues.” He accused the UK of seizing territory and oil resources that belong to the Argentine people. Hours earlier, Israel's Finance Minister, Bezalel Smotrich, had called for the expulsion of the British ambassador to Israel. These remarks reflect widening rifts between London and Tel Aviv over British policy towards Palestine, but they do not yet represent a change in Israel's official position on the islands' sovereignty.
President Milei, for his part, is stepping up his offensive. On Thursday, he announced plans to toughen sanctions on oil companies operating under British-issued licences, and to send a bill to Congress that would extend penalties to suppliers and bar offenders from contracting with the Argentine state. He also confirmed he would revive plans to build a naval base in Ushuaia, about 700 kilometres from the islands. On Monday, he instructed Economy Minister Luis Caputo to prioritise the project in the 2027 budget, which the government will send to Congress this month.
The dispute over the Falklands, known in Argentina as the Malvinas, remains one of the most enduring colonial-era conflicts in Europe's periphery. While the UK maintains that the islands' residents have the right to self-determination, Argentina insists on its sovereignty claim. The involvement of an Israeli company adds a new geopolitical dimension, linking the South Atlantic dispute to broader tensions in the Middle East. As Netanyahu's government faces pressure from multiple fronts, the question of whether Israel will formally back Argentina's claim remains open.
For European observers, the case underscores the complexities of resource extraction in disputed territories. The Sea Lion project is a test case for how international law, corporate interests, and national sovereignty intersect. The European Union has generally supported the UN's call for dialogue between Argentina and the UK, but has not taken a position on sovereignty. As the legal proceedings unfold in Buenos Aires, the implications for investors and for regional stability will be closely watched.
