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Sanctions over Sea Lion
Argentine President Javier Milei escalated his dispute with Britain over the Falkland Islands on Thursday by vowing new measures to halt the deep-sea Sea Lion oil project, which he said was advancing without Argentina’s permission.
“Milei cast Trump's comments as proof that his close relationship with the U.S. president”
Milei announced sweeping actions aimed at stopping development of the Sea Lion project about 220 kilometers (140 miles) north of the islands, threatening tougher sanctions against companies involved in offshore drilling and warning that any further advance on the Malvinas Islands would be considered a violation of national security.
The Sea Lion project is co-developed by Britain’s Rockhopper Exploration and Israel’s Navitas Petroleum, and it is targeting first oil in early 2028, with production start described as 2028 in multiple reports.
NPR tied Milei’s escalation to U.S. President Donald Trump’s comments, quoting Milei saying, "The United States is considering this change in position because it knows that Argentina has a reliable partner".
The dispute remains rooted in the 1982 Falklands War, which NPR said killed 649 Argentine troops, 255 British service members and three islanders, and in Britain’s continued control of the islands since 1833.
Trump, Britain, and pushback
Trump’s remarks fed the diplomatic tension as Milei framed them as leverage for Argentina, while Britain and U.S. officials faced pressure over whether Washington would shift from neutrality.
In a nationally televised speech, Milei said the United States is considering a change in position because it knows Argentina has a reliable partner, and he also threatened sanctions aimed at stopping the Sea Lion project.
Britain’s response came through Wes Streeting, who said on Friday that Milei’s statement "tells us more about domestic politics in Argentina than it does about the Falkland Islands" and added, "The Falklands are British because Falkland Islanders choose to be British."
CNN reported that Milei described the offshore project as a "concrete and urgent danger" and warned that if Argentina failed to act, "within a few months, they will possess the physical capacity to take the oil reserves that lie beneath our waters."
CNN also quoted Britain’s foreign minister Ed Miliband saying on X, "The Islands are British and will remain so because that is the overwhelming position of the Islanders," as Milei’s plan called for a law change to penalize companies providing services to those involved in hydrocarbon exploitation.
What’s at stake next
The next phase of Milei’s campaign centers on sanctions that would extend beyond the two drilling firms to suppliers and corporate decision-makers, while also pairing economic pressure with military posture in Argentina’s far south.
“The sanctions would target the Sea Lion project”
Al Jazeera reported that Milei said he would seek approval of urgent legislation to toughen penalties for companies operating near the islands without approval from Buenos Aires, and that the sanctions would extend beyond the two firms to suppliers, shareholders and directors.
Milei also said the sanctions could bar companies from operating in Argentina altogether, while Britain’s Defence Secretary Wes Streeting reiterated that "Our commitment to the Falklands is absolute and unshakeable" as London pointed to the 2013 referendum.
The project’s timeline and scale remain central to the dispute, with multiple outlets tying the Sea Lion field to production by 2028 and describing it as a deep-sea development about 220 kilometers (140 miles) north of the islands.
In the Reuters-linked reporting, Argentina’s push for sanctions is framed as part of a sovereignty dispute over which Britain and Argentina went to war in 1982, and it is linked to the Sea Lion project’s ownership structure, including Navitas Petroleum’s 65% stake and the 35% held by Rockhopper Exploration.