Argentina launches Falkland Islands upstream sanctioning proceedings

Argentina has alleged “illegal exploitation” of hydrocarbons in waters off the Falkland Islands.

The move comes shortly after Beijing spoke out in support of Argentina’s claim of sovereignty over the British overseas territory – which it calls Las Malvinas – and as Argentina’s congress debates associated bills.

During a press conference on Thursday, Daniel Filmus – head of Argentina’s department for the Malvinas, Antarctica and South Atlantic – said the government was starting the sanction notification process, alleging the firms were operating in Argentine territory and without authorization.   

He named British player Harbour Energy – the result of a merger completed this year between Chrysaor and Premier Oil – Israel’s Navitas Petroleum and Chrysaor.

Companies have already been sanctioned by Argentina for operating in areas the cash-strapped country claims are part of its continental shelf. 

British oil firm Rockhopper Exploration holds key interests in the North Falkland basin, along with Harbour Energy. Work has also gotten underway on a proposed 30% farm-in by Navitas into the fully appraised Sea Lion project. Sea Lion holds 530Mb (million barrels) of 2C recoverable resources.

Rockhopper has been operating offshore at the Falkland Islands since 2014. In March the company announced that the Falkland Islands government agreed to extend each of Rockhopper’s North Falkland basin petroleum licences, including the Sea Lion discovery area, until November 2022, with no additional license commitments.

A Navitas spokesperson said the company did not wish to comment. A Harbour Energy spokesperson was not immediately available when contacted by BNamericas.

Various exploration campaigns have been carried out off the islands, but commercial production has not started.

Last week, as previously reported, Argentina’s environment ministry started a public consultation on a planned offshore hydrocarbons exploration project targeting areas CAN 108, 100 and 114 of the Argentina Norte basin.

The government this year authorized Shell to join YPF and Equinor to explore CAN-100. YPF and Equinor are partners at CAN-114, while Equinor has a 100% interest in CAN-108.