Argentina's President Milei has announced plans to sign a decree sanctioning companies working on oil exploration of the Falkland Islands, coming a mere days after President Trump indicated that the US position on the archipelago was "under review".
The Libertarian-Right firebrand leader proclaimed quite provocatively that "The Falkland Islands are Argentinian, historically and legally. There is no debate" and added that the "winds of change" have more lately favored Argentina's claim.
Milei characterized the Falkland's Sea Lion Project, which is based out of what firmly remains a British territory, as essentially a resource-grab which undermines Argentinian sovereignty.
The area to be tapped lies some 140 miles north of the Falkland Islands and is widely estimated to hold a whopping 1.7 billion barrels of oil.
The ambitious project involves Israeli and British firms, creating rare tensions between staunchly pro-Israeli Milei and what are primarily Tel Aviv-based investors.
He further warned that given the project has proceeded without Argentina's permission, it marks a "concrete and urgent danger," given that "If we fail to act, within a few months, they will possess the physical capacity to take the oil reserves that lie beneath our waters."
According to more on ownership details via Reuters:
The project's two owners have strong Israeli ties. Sea Lion is operated by Tel Aviv-listed Navitas Petroleum (NVPTp.TA), which holds a 65% stake.
Gideon Tadmor, a prominent figure in Israel's energy sector and also the company's chair, holds about 9% of shares in the company, according to LSEG data.
The remaining 35% of Sea Lion is owned by London-listed Rockhopper Exploration (RKH.L), with Israel-based Noked Capital, Brosh Funds and ION Fund Management among its top five investors, owning between 4.6% and 9.2% each.
Navitas and Rockhopper said the Sea Lion project had valid licenses and that they did not expect Milei's comments to have a material effect on the project's development.
Navitas is charging ahead, indicating in its statement that it won't bow to Argentine pressure and that it's done everything correctly and legally.
"The Partnership operates pursuant to valid petroleum licences lawfully granted to it by the Government of the Falkland Islands, a self-governing UK Overseas Territory, and with the full and ongoing support of the UK Government," Navitas said.
The Falklands remain a unique pressure point for Britain, which fought a war over the islands in the early 1980s. The United Kingdom has controlled it going all the way back to 1833.
However, Trump's recent signaling that he'll reconsider the US' position on the Falklands appears to be a big lever over London, and of course there's the reality that Trump's alignment with Milei is tighter than ever.
Recent reporting in The Telegraph said the Trump administration is using Britain's sovereignty over the Falkland Islands ultimately as leverage to pressure the European ally into meeting NATO's new defense-spending target.
Back in April, Milei proclaimed on X in Spanish that "The Malvinas were, are, and always will be Argentine" - using the Argentine name for the islands. He also told media outlets at the time that his government is doing "everything humanly possible" to return the Falklands to Argentina.