Argentina has launched legal action at the International Tribunal for the Law of the Sea to block UK-authorised oil exploration north of the Falkland Islands, escalating a longstanding territorial dispute between the two nations.
Buenos Aires claims the UK authorised exploration "illegally" in disputed maritime areas. The action targets the Sea Lion oilfield project, a joint venture between British firm Rockhopper Exploration and Israeli company Navitas Petroleum. The field sits roughly 130 miles from the Falkland Islands and contains an estimated 1.7 billion barrels of oil, expected to begin production in 2028.
Argentina's Foreign Affairs Minister Pablo Quirno said the tribunal application seeks orders halting new exploration permits and protecting the marine environment of the continental shelf. Argentina maintains the area falls under its sovereign rights under international law.
The UK Foreign Office contests this. Minister Uma Kumaran told the House of Commons on Tuesday that the Sea Lion oilfield sits lawfully on the Falkland Islands shelf and is regulated by the islands' government. She accused Argentina of "economic coercion" against the Falkland Islands population of roughly 3,500. Foreign Secretary Ed Miliband said Argentina's "attempts to intimidate businesses and individuals engaged in legitimate commercial activity are unacceptable".
The move follows Argentine President Javier Milei's demand two weeks ago that the Sea Lion project be scrapped and his threats to impose economic sanctions on firms exploiting oil near the islands. Milei also criticised the UN at the General Assembly last month, calling it "a useless organisation" for inaction on Falklands sovereignty.
The UK government said it will defend its position firmly at the independent Hamburg-based tribunal, which oversees application of the UN Convention on the Law of the Sea. The UK is also introducing protections under the Protection of Trading Interests Act to shield companies from extra-territorial impact of Argentine laws.
The Falkland Islands government granted exploration licences last month, though they require UK Foreign Secretary sign-off. The dispute reflects Argentina's persistent claim to the territory, known locally as Las Malvinas, more than 40 years after its 1982 military defeat. UK officials believe the current Argentine leadership is deliberately escalating tensions ahead of elections next year.