Milei Threatens Sanctions on Falklands Oil Project as Rockhopper Defends Plans
A British oil exploration company, Rockhopper, has defended its plans to extract oil from the Falkland Islands despite threats of sanctions from Argentina's president. Javier Milei said he would sign decrees to introduce penalties against any companies working on oil production in the area, calling it a 'clear and present danger' to his country's claims.
The Sea Lion project, which is expected to start delivering oil in 2028, is a joint venture between Rockhopper and Israeli partner Navitas. It operates under valid petroleum licences lawfully granted by the Falkland Islands government, with full support from the UK Government.
Rockhopper's shares dropped around 6.5% on Friday morning after Milei's statement, but the company remains confident that the development activities of the Sea Lion project will not be affected. The first phase of the project is expected to cost around $2.1 billion and produce 900 barrels of oil per day.
The Falkland Islands government will take a 9% royalty on revenues from the oil field, with Rockhopper owning 35% of the Sea Lion project and Navitas holding 65%. The UK Government has supported the project throughout its development, but Argentina's president has renewed tensions by hinting at taking back the islands.