Rockhopper Defies Milei Threats, Presses On with Falklands Oil Project

A British-based oil exploration company, Rockhopper, and its Israeli partner Navitas are moving forward with their Sea Lion project to extract oil north of the Falkland Islands. Despite threats from Argentina's President Javier Milei, who declared the Sea Lion oilfield a 'clear and present danger' to his country's claims, Rockhopper does not expect the threats to have a material effect on its project.

Milei stated that he would sign decrees to introduce sanctions against any companies working on oil production in the area. However, Rockhopper and Navitas maintain that their operation is lawful, granted by the Falkland Islands' government, which is a self-governing UK Overseas Territory, with full support from the UK Government.

The Sea Lion project is expected to start producing oil in 2028, with an estimated first phase cost of $2.1 billion (£1.55 billion). The field is believed to contain around 900 barrels of oil, and the Falkland Islands' government will take a 9% royalty on revenues.