Argentina announced it will file criminal charges against Navitas Petroleum for operating in the seas off the Falkland Islands.
The move comes just days after President Javier Milei urged sanctions on oil companies drilling in the British overseas territory.
Sovereignty over the archipelago remains contested, with the UK and Argentina disagreeing more than 40 years after the 1982 conflict.
Milei, criticised for "softness" on the Falklands, declared that the territory is Argentine in a speech that highlighted the danger of drilling and dismissed a 2013 referendum favouring British rule.
Navitas holds a 65% interest in Sea Lion, an offshore oil project expected to begin production in 2028 and containing an estimated 1.7 billion barrels of oil roughly 130 miles from the islands.
The Argentine government alleges that the project violates national law by exploiting resources without approval, and will pursue necessary actions to protect its sovereignty.
Navitas has not yet responded, but stated that “Milei’s remarks are not expected to materially affect the development timetable.” Rockhopper, a partial stakeholder, has also remained silent.
The UK has reaffirmed its unwavering support for the Falklands, while Argentine officials press for a swift resolution to the dispute.
