Malvinas oil: UK rejects arbitration request, says it will ‘robustly defend’ islanders

The U.K.’s Parliamentary Under-Secretary of State for Overseas Territories Uma Kumaran rejected Argentina’s decision to begin arbitration over the Sea Lion oil project in the Malvinas area, saying it “raises questions” about the country’s “reliability as a partner for the United Kingdom.”

Kumaran, who is also an MP, described the move as “the latest attempt to undermine the rights and livelihoods” of the people of the Malvinas Islands.

“We will robustly defend their wishes, their economy, and their right to determine their own future. As the prime minister has made clear, our support is steadfast,” the document said.

The statement went on to say that “efforts to obstruct lawful economic activity in the Islands are not acts of responsible international engagement; they are deliberate attempts to undermine the prosperity and economic security of a self-governing people.”

The Falkland Islands are British. We will always defend the Falkland Islanders’ right to self-determination.
 
Read the United Kingdom’s response to Argentina’s latest attempt to undermine the rights of Falkland Islanders below. pic.twitter.com/dwobfm98o4

— Uma Kumaran MP (@Uma_Kumaran) September 30, 2026 Rockhopper’s response to Argentina British oil firm Rockhopper Exploration published its first-half 2026 results on Wednesday, where it reaffirmed its goal to begin oil production at the offshore Sea Lion project around the Malvinas in the first quarter of 2028.

Included in that document was the company’s response to Argentina’s actions aimed at halting drilling in the area, echoing comments from authorities from the Malvinas Islands and the British government describing the measures as “illegitimate and lacking legal justification.”

The report added that Navitas, the Israeli company running the project, considered its oil licenses valid and legally granted by the island’s government. Rockhopper owns a 35% stake in Sea Lion, while Navitas holds 65% and operates the project.

According to Rockhopper, Navitas does not expect the recent developments to have a material impact on Sea Lion’s schedule. The Israeli company plans to start drilling development wells in early 2027.

Rockhopper raised a combined US$200 million through a share placing and open offer. The company said the proceeds are sufficient to fund its commitments through mid-2028, including its share of the first phase of Sea Lion, the acquisition and refurbishment of a second floating production, storage, and offloading vessel (FPSO), and exploration activities.

Argentina steps up pressure The reaffirmation of the Sea Lion schedule comes as Argentina intensifies efforts to challenge oil and gas activity in waters surrounding the Malvinas Islands.

In early September, the Argentine government introduced a new sanctions regime covering individuals and companies conducting hydrocarbon activities without Argentine authorization in maritime areas associated with the Malvinas Islands, South Georgia and the South Sandwich Islands.

Decree 868/2026 designated Argentina’s Foreign Ministry as the relevant authority and introduced additional controls for companies seeking access to the country’s RIGI investment incentive regime or hydrocarbon permits.

The government subsequently filed complaints against companies linked to Sea Lion, arguing that some hold licenses granted by the UK that Argentina considers illegitimate.

The dispute escalated on Sept. 28, when President Javier Milei instructed the Foreign Ministry and government legal teams to begin arbitration proceedings under Annex VII of the United Nations Convention on the Law of the Sea.

Argentina has demanded that the UK prevent the start or continuation of hydrocarbon development at Sea Lion. It has also warned that, absent a response, it would turn to the International Tribunal for the Law of the Sea to seek provisional measures.

Editorial disclaimer: Although the UK refers to the territory as the “Falkland Islands,” Argentina strongly contests this name. The Buenos Aires Herald uses “Malvinas” to refer to the islands.

With information from Ambito