Falklands Oil Firms Urge Miliband To Back Sea Lion Project After Milei’s Threats

British oil developers Rockhopper and Navitas have urged Labour leader Ed Miliband and the Foreign Office to provide stronger diplomatic backing after Argentina’s president, Javier Milei, publicly targeted the Sea Lion oil project off the Falkland Islands.

The companies, which are jointly developing the Sea Lion field under licences granted by the Falkland Islands government, said they are operating in full compliance with applicable law and remain in close contact with island authorities as they press ahead with development plans.

Milei’s Ultimatum

In a social media post, President Milei set a two-week deadline for the UK to halt exploration at Sea Lion and threatened legal action and sanctions against companies involved. He additionally warned that executives, workers and contractors associated with the project could face arrest, and issued similar threats toward vessels in the Falklands fisheries fleet.

Companies’ Response

Navitas and Rockhopper have asked the Foreign Office to rebut what they described as "illegitimate threats" and to offer clearer protections for UK businesses and personnel working on the project. A company spokesman said:

"We are working in full compliance with all applicable law and are in very close contact with the government in the Falkland Islands. We call on the Foreign Office to respond appropriately to Argentina's illegitimate threats against Falklands and UK businesses and individuals, as we continue to develop the project and ensure that it remains on track."

Javier Milei has threatened to sanction all companies working on the Falklands oil project with their executives, workers and contractors also facing arrest - Brendan Smialowski/AFP via Getty Images

Project And Local Impact

The Sea Lion field is estimated to contain up to 1.7 billion barrels of oil. It lies about 136 miles north of the Falklands beneath roughly 500 metres of water and a further 2,000 metres of rock. Rockhopper, which discovered the prospect, holds just over a third of the licences covering the field and has partnered with Navitas, which provided development capital.

Navitas has established a UK subsidiary with offices in London, Aberdeen and Stanley and plans to farm development work to UK contractors, potentially employing up to 1,000 former North Sea workers. Both firms say some revenue would flow to islanders, with projected local income that company statements estimate could be worth around £1m per islander in the event of a significant commercial discovery.

Political Fallout

Conservative MPs have criticised Labour for what they call an insufficiently robust public response. Shadow Energy Secretary Andrew Bowie said the Government should reassure islanders and companies and accused Labour of failing to offer necessary support.

The Foreign Office said the UK ambassador in Buenos Aires has met Argentinian officials to set out the UK's rejection of Milei's claims and reiterated that attempts to obstruct or harass international companies working on Falklands hydrocarbons would have no justification in international law. A Foreign Office spokesman said:

"Efforts by Argentina to obstruct and harass international companies involved in Falkland Islands hydrocarbons have no justification whatsoever in international law and are inconsistent with free trade. We will continue to support businesses and individuals affected."

Navitas and Rockhopper say they will continue project development while seeking clearer diplomatic assurances from Westminster to protect operations and personnel amid rising tensions.