UK backs Falklands firms after Argentina blocks oil project

The United Kingdom has backed businesses and individuals operating in the Falkland Islands after an Argentine federal judge ordered British and Israeli companies to halt development of an oil project near the disputed territory.

The UK Minister for Overseas Territories, Uma Kumaran, said the government stood behind businesses and individuals supplying goods and services to the Falkland Islands, including those in the hydrocarbons sector.

“The UK is clear: the Falkland Islands are British and they have the right to develop their natural resources as they see fit. This is an integral part of their right of self-determination,” Kumaran said in a statement published on Friday on the Home Office website.

“In recent weeks, Argentina has continued to threaten businesses and individuals supplying goods and services, directly and indirectly, to the Falkland Islands, including in the hydrocarbons sector.

“The UK Government and our diplomatic network stands fully behind those businesses and individuals. They have our full support.”

The statement came a day after an Argentine federal judge ordered British and Israeli companies to stop developing an oilfield off the Falkland Islands, opening a new legal front in the longstanding sovereignty dispute between Argentina and the UK.

Judge Mariel Borruto ordered a halt to the Sea Lion oil project, located about 220 kilometres north of the Falkland Islands, barring drilling, offshore installations and port construction until Argentine authorities can conduct an environmental review and issue a decision, according to an Associated Press report.

The companies targeted by the order are Britain’s Rockhopper Exploration and Israel’s Navitas Petroleum, which are involved in the Sea Lion project.

Reuters reported that Argentina has intensified legal action against companies involved in oil exploration near the Falkland Islands as President Javier Milei’s government pursues its sovereignty claim over the British-controlled territory.

Argentina has also moved to strengthen sanctions against companies operating in the Falklands, with the government introducing a bill on September 17 that would increase penalties for unauthorised exploitation of natural resources and extend potential sanctions to companies, shareholders and suppliers.

Responding to the wider pressure on businesses linked to the islands, Kumaran said the UK government considered Argentina’s actions unacceptable.

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“This is not the first time that an Argentine Government have made economic threats against the Islanders, yet the Falkland Islands economy continues to flourish.

“The UK stands in lockstep with the international community and any attempt to politicise international mechanisms against individuals for doing business with the Falklands are illegitimate.

“These charges against companies and individuals are unacceptable, with no legal justification.”

Reuters reported earlier this week that Argentina had announced plans to file new legal complaints against companies exploring for oil near the Falkland Islands and was preparing legislation to toughen sanctions against firms operating there.

The report said Britain had previously sought to reassure companies doing business in the Falkland Islands, saying Argentina had no right to exercise jurisdiction over the territory or apply its domestic law to companies or individuals involved in business connected with the islands.

The sovereignty dispute dates back decades, with Argentina referring to the islands as the Malvinas and Britain administering them as the Falkland Islands. The two countries fought a 10-week war over the islands in 1982 after Argentina invaded them.

Kumaran said the UK would continue to support economic activity in the territory.

“There are enormous opportunities available for businesses in the Falklands, and we will work tirelessly with the Falkland Islands Government to ensure their wishes are protected.”

Meanwhile, recall that after Argentina’s 2–1 World Cup semi-final win over England on July 15, 2026, Lisandro Martínez and Giovani Lo Celso displayed a banner reading “Las Malvinas son Argentinas” (“The Falklands are Argentine”) during the celebrations.

The UK Government subsequently called on FIFA to investigate, citing its rules prohibiting political messaging at stadiums.

FIFA opened an investigation into the banner and later opened disciplinary proceedings against the Argentine Football Association over several World Cup incidents, including the display of inappropriate messages