Argentina on Friday began sanctioning 45 people and companies it says are involved in oil exploration and production around the Falkland Islands, escalating Javier Milei’s push to block the Sea Lion project.
Sea Lion — about 220 kilometers north of the islands — is expected to start production in 2028, and Milei cast the U.K.-Israel venture as an illegal exploitation of waters Argentina claims.
Rockhopper Exploration and Navitas Petroleum said the measures should not materially affect development work or the project timetable, citing licenses from the Falkland Islands government backed by Britain.
Britain reiterated that the islands will remain British, pointing to a 2013 referendum in which 99.8% of voters chose to stay a U.K. overseas territory.
Milei’s tougher line revives a dispute that led to the 1982 war, while he also pointed to signs the Trump administration may be reconsidering Washington’s long-neutral stance.