Key facts
- Halliburton will not participate in any oil or gas development around the Falkland Islands.
- Argentina's President Javier Milei has threatened sanctions and initiated international arbitration against the UK over the Sea Lion project.
- The Sea Lion project, discovered in 2010, has estimated reserves of 315 million barrels.
- Navitas Energy took over operatorship of the Sea Lion project in 2021.
- First oil from Sea Lion was expected to start flowing in 2028.
Halliburton, a major oilfield services provider, has stated it will not participate in any oil or gas development around the Falkland Islands, including the Sea Lion project. This decision comes amid increased pressure from Argentine President Javier Milei, who has reiterated Argentina's claim over the territory and threatened sanctions against companies involved in offshore drilling.
President Milei has also initiated international arbitration against the United Kingdom for alleged "illegal plundering of our resources" through the Sea Lion Project. He has threatened further legal action if the UK does not halt the exploitation of resources in the North Malvinas Basin.
The Sea Lion project, discovered by UK-based Rockhopper Exploration in 2010, is estimated to hold 315 million barrels of recoverable crude oil, with a projected peak production of 50,000 barrels per day. The project has faced setbacks due to its capital-intensive nature and its location in a disputed territory. In 2021, Israeli company Navitas Energy took over operatorship with a 65% stake, and a final investment decision was made in December of the previous year, with first oil anticipated in 2028.
Argentina's stance is reportedly linked to its own energy expansion plans, particularly the Vaca Muerta shale formation, which is a key driver of its economic growth. Production from Vaca Muerta is projected to reach 1 million barrels daily by 2030, and Argentina may not welcome competition from a field in a contested territory.