Falklands oil project faces Milei arbitration threat

Argentina's President Javier Milei threatened on Monday to take the United Kingdom to arbitration over the Sea Lion oil project near the Falkland Islands, a British-administered territory claimed by Buenos Aires.

Milei said on X that he had instructed Argentina's Foreign Ministry and legal teams to begin arbitration proceedings against the United Kingdom over what he called the “illegal sacking” of Argentine resources through the project in the North Falklands Basin.

He said Argentina would go to the International Tribunal for the Law of the Sea if Britain did not stop the project within two weeks.

The Sea Lion oil field is about 220 kilometres from the islands. The companies developing it, Israel's Navitas and Britain's Rockhopper, have said they have valid exploration licences issued by the United Kingdom.

Milei's administration has already taken legal action against the project, arguing that it violates a UN resolution calling for both sides to avoid unilateral actions in the islands until the sovereignty dispute is resolved.

The British government has said it supports businesses operating near the Falklands and argues the islands have the right to develop their natural resources as they see fit.

Britain and Argentina fought a 10-week war over the islands in 1982. The conflict killed 255 British troops and 649 Argentines.