Argentine environmental groups file legal action to halt Sea Lion offshore oil project near Malvinas Islands

The Asociación Argentina de Abogados Ambientalistas and Centro de Ex Combatientes Islas Malvinas La Plata filed suit in Río Grande Federal Court demanding immediate suspension of Sea Lion operations, located approximately 220 kilometers north of the Malvinas Islands in blocks PL032 and PL004b. The organizations contend the project, which targets extraction of over 1.3 billion barrels of crude, proceeds without Argentine environmental impact assessment or required hydrocarbon exploration permits. The legal action seeks a $156.4 million preventive embargo on company assets and demands identification of all banks, investment funds, and insurers financing the development.

The project partnership consists of Israeli-based Navitas Petroleum holding 65 percent and UK-based Rockhopper Exploration retaining 35 percent. Navitas acquired its initial 30 percent stake in early 2020 before becoming operator and increasing participation. Rockhopper discovered the field in May 2010 and has operated in the Malvinas basin since 2004. The companies announced final investment decision in December 2025, advancing toward projected first oil in March 2028 with initial production of 50,000 barrels daily from proven and probable reserves of 314 million barrels as of July.

The initial development phase encompasses 23 subsea wells including 16 production wells, six water injection wells, and one gas injection well, supported by subsea pipelines, seabed equipment, and a floating production storage and offloading unit. Construction activities on dock and shore facilities commenced during 2026, with drilling scheduled for early 2027. The complete development plan envisions more than 60 subsea wells across multiple phases, with production projected to continue beyond 30 years.

The plaintiffs invoke Argentina’s constitutional claim to sovereignty over the Malvinas, South Georgia, South Sandwich Islands and corresponding maritime zones, asserting that British colonial administration permits cannot substitute compliance with Argentine law. Both companies face existing Argentine sanctions, with Rockhopper declared clandestine in 2012 and barred from operating for 20 years in 2013, while Navitas received equivalent penalties in 2022.

President Milei addressed the matter in a national broadcast, announcing a decree to expedite Law 26.659 sanction procedures against entities participating in hydrocarbon extraction on occupied Argentine continental shelf territory. The Foreign Ministry has dispatched approximately 180 deterrent notices to companies and 29 countries involved in Malvinas projects. The new decree mandates state agencies to report legal violations to the Foreign Ministry and incorporates sworn declarations into hydrocarbon procedures and the RIGI large investment incentive regime to prevent authorizations for operators extracting resources without recognizing Argentine sovereignty.