The Sea Lion oil project north of the Falkland Islands has been halted under an interim injunction issued in Argentina. The Federal Court in Rio Grande, in Tierra del Fuego province, prohibited work on the project until the environmental impact assessment is completed.
The ruling by Federal Judge Mariel Borruto prevents Israeli company Navitas Petroleum and British company Rockhopper Exploration from starting or continuing the activities required to develop the project.
Temporary ban on drilling and production activities
The court order covers drilling, the installation of subsea facilities and the start of commercial oil production. These activities must remain suspended until the environmental impact assessment is completed by Argentine authorities.
Borruto requested information from the companies about the project's current status and schedule, as well as the wells planned for drilling, floating production facilities, contractors, sources of financing, insurers and environmental studies.
Application highlights environmental and sovereignty dispute
The case was brought by the Falkland Islands Veterans Center, based in La Plata, and an association of lawyers specializing in environmental law. The application sought to halt oil activities, citing the project's environmental impact and the sovereignty dispute over the Falkland Islands.
Navitas Petroleum and Rockhopper Exploration are involved in the Sea Lion project, located 220 kilometers north of the Falkland Islands, which are administered by the United Kingdom but remain claimed by Argentina. The companies made a final investment decision on the project in late 2025.
Injunction does not constitute a final ruling
The court said the order was temporary and did not constitute a final ruling on the companies' liability or all the issues raised in the main case.
Argentina has stepped up its legal and diplomatic efforts against oil companies operating around the Falkland Islands. The government of Javier Milei maintains that the islands and the surrounding maritime areas are Argentine territory and opposes the oil project.
The United Kingdom, meanwhile, says it has administered the islands since 1833, rejects Argentina's sovereignty claim and supports economic activity in the area.
