Argentina asks UN tribunal to halt Falklands oil project

Argentina asked the International Tribunal for the Law of the Sea in Hamburg this week to order a suspension of drilling at the Sea Lion oil project near the Falkland Islands, known in Argentina as Las Malvinas, saying the work risks irreparable harm while the sovereignty dispute with Britain remains unresolved. Britain says the tribunal has no jurisdiction and that a suspension would cost the islands billions of pounds. The project is expected to double the islands' GDP, with an £8bn uplift in revenue for the Falkland government over the field's lifetime, according to The Guardian.

The project is led by Britain's Rockhopper Exploration and Israel's Navitas Petroleum, the operator, according to Al Jazeera. Al Jazeera reported that the field lies about 220km (137 miles) from the islands, that drilling is expected to start in March 2027 and production in 2028, and that Rockhopper estimates 1.7 billion barrels of oil in place, with 500 million recoverable. Britain has administered the islands since 1833, and Argentina claims sovereignty over them. Argentina filed its request for provisional measures on October 13, Al Jazeera reported, arguing that the project violates a UN resolution calling on both sides to refrain from unilateral actions until the dispute is resolved.

At the hearing, Argentina's lawyer Mario Oyarzabal said the measures met four conditions: prima facie jurisdiction, plausible rights, risk of irreparable harm and urgency, the Buenos Aires Times reported. Oyarzabal also said, according to Al Jazeera, that the resources "belong to the Argentine people", some 46 million of them, and that while Argentina respects the islanders' way of life, they do not have the right to decide which state the islands belong to. Nico Schrijver, another member of Argentina's delegation, said Sea Lion had moved from exploration to a production plan with up to 26 permanent underwater wells and estimated output of 310.5 million barrels, according to the Buenos Aires Times. "Only this Tribunal can act in time to prevent this," Schrijver said.

Britain's attorney general for England and Wales, Ellie Reeves, told the tribunal that Argentina wanted to "take control of those resources for itself" and that suspending the project would have "devastating consequences" for the Falkland Islands, Al Jazeera reported, citing The Guardian. Reeves said the measures would prevent islanders from developing their natural resources under their right to self-determination and put billions of pounds at risk. Britain also disputes the tribunal's jurisdiction, MercoPress reported.

The Guardian reported that Rockhopper chief executive Sam Moody and the company's finance chief received correspondence from Argentina on September 1 threatening criminal prosecution, imprisonment and fines under Argentine domestic law. Moody made the disclosure in a witness statement to the tribunal, the Guardian reported. The newspaper also said Argentina had banned Navitas from operating in the country for 20 years, written to Standard Chartered bank in Port Stanley, and that US firm Halliburton had said it would not work on Sea Lion.

Argentina's Foreign Minister Pablo Quirno said on Thursday that the government could bring criminal lawsuits against directors of Rockhopper and Navitas. "We believe that both Rockhopper and Navitas and their directors are committing crimes which, according to Argentine legislation, warrant such action and we will go ahead with it," the Buenos Aires Times quoted him as saying. He said Argentina would use all legal, diplomatic and judicial instruments to stop the project.

The tribunal has not set a date for its decision. Some sources cited by the Buenos Aires Times suggested a ruling could come before the end of the month.