Shares in British oil and gas firm Rockhopper Exploration fell by 6.4% on Friday following threats from Argentina's President Javier Milei to impose sanctions on companies involved in oil drilling near the Falkland Islands. Milei stated that the Sea Lion oilfield, a joint venture between Rockhopper and Israeli partner Navitas Petroleum, represents a "clear and present danger" to Argentina's interests.
"If we do not act swiftly, in a few months they will have the material capacity to access the oil that lies underneath our sea," Milei said, asserting Argentina's claim to the British territory. The company and its partner are scheduled to commence oil extraction within two years.
Despite the escalation in rhetoric, Rockhopper and Navitas insisted that the threats would have no material effect on their project plans. The company, named after the regional Rockhopper penguins, has been at the forefront of exploration efforts in the disputed waters.
Milei's remarks signal a renewed assertiveness from Argentina regarding its territorial claims, which have been a point of contention with the United Kingdom for decades. The Falkland Islands, located off the coast of South America, have been a British Overseas Territory since 1833. Argentina continues to claim sovereignty over the islands, which it refers to as the Malvinas. The potential for significant oil reserves in the surrounding waters has added another layer of complexity to the long-standing dispute.