Arbitration Argentina

Argentina to Seek ITLOS Arbitration and Provisional Measures over Sea Lion Oil Project in Malvinas

By ADR Journal Editorial Desk Published 3 sources Arbitration Argentina Award Claims Energy Sector Unclos United Kingdom Argentina

Stories are grouped across languages, rewritten into a fixed editorial format, and linked to original sources.

TL;DR

  • Argentina is preparing to file an arbitration against the UK over offshore oil activities near the Malvinas/Falklands.
  • Argentina will seek ITLOS provisional measures to halt the Sea Lion oil project by Navitas and Rockhopper.
  • The dispute centers on hydrocarbon rights and does not address sovereignty over the islands.
  • The UK has publicly rejected Argentina's claims and continues to support oil activity.

Overview

Argentina is advancing plans to file for arbitration against the United Kingdom pursuant to Annex VII of the United Nations Convention on the Law of the Sea (UNCLOS), in an effort to halt hydrocarbon operations related to the Sea Lion oil project off the Malvinas/Falkland Islands.

The Argentine government will request provisional measures from the International Tribunal for the Law of the Sea (ITLOS), seeking to suspend ongoing development by companies Navitas Petroleum and Rockhopper Exploration while the dispute proceeds.

The UK has rejected Argentina's demand to halt oil activities, maintaining that its actions comply with relevant laws and international standards.

Related Stories: Renewables Arbitration Awards Threaten Spain's Assets Amid World Cup Preparations

What Happened

After a two-week ultimatum expired, Argentina's Ministry of Foreign Affairs confirmed preparations to formally initiate an arbitration proceeding against the United Kingdom under Annex VII of the United Nations Convention on the Law of the Sea.

Argentina is expected to submit a request for provisional measures to the International Tribunal for the Law of the Sea (ITLOS) in Hamburg, aiming to prevent further hydrocarbon development in the Sea Lion project area pending a full arbitral decision.

President Javier Milei publicly announced the move, framing it as a response to what Argentina considers the 'illegal exploitation' of natural resources in waters off the Malvinas/Falklands, which the UK administers but Argentina claims.

The case targets the actions of Navitas Petroleum (Israel) and Rockhopper Exploration (UK), which in late 2025 finalized investment plans to start oil production by 2028. Despite Argentina's objections, the companies and their partners have continued with preparatory investments, including contracting for a floating production unit (FPSO).

While Argentina has also imposed sanctions and criminal complaints domestically against companies involved, the ITLOS request will seek international orders but will not address underlying sovereignty issues, as such matters fall outside the Tribunal's jurisdiction.

The UK government has rejected Argentina's claims, describing its actions as compliant with international law and the rights of the inhabitants of the islands.

Context

This arbitration effort follows previous legal and diplomatic measures by Argentina targeting oil activity in waters surrounding the Malvinas/Falklands Islands.

An earlier precedent involved Argentina's successful request for provisional measures regarding the release of the naval vessel ARA Libertad by ITLOS.

The Sea Lion project, developed by Navitas and Rockhopper, targets offshore oil reserves that have prompted repeated objections by Argentina since their discovery and licensing.

While the sovereignty of the Malvinas/Falklands is a central political dispute, ITLOS proceedings are expected to focus only on issues within its competence under UNCLOS.

Why It Matters

  • The case would mark a new instance of international arbitration regarding the long-running dispute over resource extraction near the Malvinas/Falklands.
  • A decision on provisional measures by ITLOS could affect project timelines and commercial operations of the involved companies.
  • The dispute raises broader issues under UNCLOS about state conduct and non-renewable resource management in disputed maritime areas.

Sources

Related Stories