Argentine President Javier Milei’s push for sanctions against companies drilling for oil around the British controlled Falkland Islands has put Israeli investors at the centre of a sovereignty dispute that led Britain and Argentina to war in 1982.
Milei, a strong supporter of Israel, on Thursday singled out the Sea Lion offshore oil project as he announced measures targeting companies involved in Falklands oil and gas activities. The proposed penalties could extend to shareholders, directors and suppliers.
Sea Lion is operated by Tel Aviv listed Navitas Petroleum, which owns a 65% stake. The company’s chairman, Gideon Tadmor, a prominent figure in Israel’s energy industry, holds about 9% of Navitas shares, according to LSEG data.
The remaining 35% of Sea Lion is owned by London listed Rockhopper Exploration. Israeli investment firms Noked Capital, Brosh Funds and ION Fund Management are among its major shareholders, each holding stakes of between 4.6% and 9.2%.
Navitas and Rockhopper said the project operates under valid licences issued by the Falkland Islands government and has the backing of the British government. Both companies said they did not expect Milei’s latest comments to have a material impact on the project.
Argentina has already barred Navitas and Rockhopper from operating in the country for 20 years over their involvement in Falklands oil exploration, which Buenos Aires considers illegal.
Shares in Navitas fell as much as 6% on Friday, while Rockhopper dropped as much as 12%.
Milei’s government has also sought to deepen relations with Israel. In April, the Argentine president met Israeli Prime Minister Benjamin Netanyahu and signed bilateral cooperation agreements, including an aviation agreement and the so called Isaac Accords aimed at strengthening ties between Israel, Argentina and other countries in the Americas.
Argentine Foreign Minister Pablo Quirno said the sanctions would not damage relations with Israel, noting that the two companies were already subject to Argentine sanctions.
The Sea Lion field is located about 140 miles north of the Falkland Islands. The field, first drilled in 2010, is estimated to contain about 1.7 billion barrels of oil.
Production is expected to begin in 2028 under the first phase of the project, with output projected at 50,000 barrels per day. Rockhopper estimates capital expenditure at about $2.2 billion.
The Falkland Islands, known as Islas Malvinas in Argentina, remain a major source of tension between Buenos Aires and London. Argentina continues to claim sovereignty over the islands, while Britain maintains control over the territory.
Leave a comment