The Argentine Republic strongly rejects the so-called “Final Investment Decision” announced by unlawful licensees —UK-based Rockhopper Exploration Plc and Israeli-founded Navitas Petroleum Development and Production Limited—for the development of the Sea Lion field in the Malvinas Norte basin, offshore the Malvinas Islands, without authorization by the competent Argentine authority.
Argentina recalls that any unilateral activity of exploration and exploitation of renewable and non-renewable natural resources in the areas that are subject to the sovereignty dispute is contrary to Resolution 2065 (XX) and related resolutions issued by the UN General Assembly and the UN Special Committee on Decolonization. These instruments recognize the existence of a sovereignty dispute between the Argentine Republic and the United Kingdom and urge both governments to resume negotiations in order to find, as soon as possible, a peaceful and definitive solution to the dispute.
Argentina's rejection extends to all related steps taken to move towards project production phase, including the adoption of purported island regulations, the granting of licences to exploit the Argentine continental shelf, the hiring of service providers, as well as any other measure or decision adopted in connection with illegal hydrocarbon exploration and exploitation activities carried out on the Argentine continental shelf adjacent to the Malvinas Islands.
Such measures constitute unilateral and unlawful actions by the United Kingdom which are contrary to UN General Assembly Resolution 31/49, which calls upon the two parties to refrain from introducing unilateral modifications in the situation while the Islands remain subject to the negotiation process recommended in the relevant UN resolutions.
Such unilateral actions are manifestly contrary to the Argentine legal system, in particular the provisions of Laws No. 26,659 and 26,915, under which no hydrocarbon exploration or exploitation activities may be carried out anywhere on the Argentine continental shelf without authorization from the Argentine competent authority.
Pursuant to these laws, both companies have already been sanctioned. Rockhopper Exploration Plc was declared clandestine and its activities were declared illegal under Resolution No. 133/2012 of the Secretariat of Energy, and the company was disqualified from operating in Argentina for a period of 20 years under Resolution No. 456/2013. Navitas Petroleum LP was made subject to the same sanctions under Resolution No. 240/2022 of the Secretariat of Energy for carrying out hydrocarbon operations in Argentine territory without the proper authorization of the competent authorities.
The Argentine Government reiterates that it does not recognize the competence or jurisdiction of any authority other than its own to establish conditions enabling hydrocarbon-related activities in the aforementioned areas. In this context, the Argentine Republic informs any individuals or legal entities, whether domestic or foreign, including companies, financial institutions, service providers, insurers and other project stakeholders, that any direct or indirect participation in unauthorized hydrocarbon exploration or exploitation activities in the disputed areas constitutes an unlawful act under both international law and the Argentine legal system, and that Argentina will take any and all appropriate action.
Consequently, those who engage in or facilitate such activities will be subject to the adoption of administrative, legal and judicial measures, including sanctions, operational restrictions, disqualifications and actions brought before national and international authorities. The Argentine Republic expressly discourages participation in these illegal undertakings and reserves the right to fully exercise all available actions to prevent the development thereof and safeguard its sovereign rights and interests.
The recent announcements regarding the intention to initiate hydrocarbon exploitation activities in disputed areas constitute a new unilateral act with potentially irreversible future effects, since this involves non-renewable natural resources. In view of the gravity of the foregoing, and in full conformity with international law, the Argentine Republic will intensify its action plan with a view to adopting any additional measures, in accordance with international law, that it considers necessary to safeguard its sovereign rights and interests.
The Argentine Republic once again reaffirms its legitimate and imprescriptible sovereignty rights over the Malvinas, South Georgias and South Sandwich Islands and the surrounding maritime areas.
