The Argentine government announced on Monday that it will file a criminal complaint against several subsidiaries of the Israeli oil company Navitas for operating without authorisation in the Malvinas (Falkland Islands), which are administered by the United Kingdom but whose sovereignty is claimed by Argentina.

The decision triggered an immediate reaction in Israel. The Minister for National Security, Itamar Ben Gvir, called on Prime Minister Benjamin Netanyahu to recognise Argentine sovereignty over the Malvinas and to impose sanctions on the United Kingdom "for as long as the occupation continues", accusing London of seizing Argentine territory and oil resources.

According to the Argentine presidency, the complaint will target Navitas Petroleum Development & Production Ltd, Navitas Petroleum Atlantic United, Navitas Petroleum LP, JHI Associates Inc and Eco Atlantic Oil & Gas Ltd, as well as their executives and representatives.

Argentina maintains that these companies "allegedly hold licences granted by the illegitimate government of the United Kingdom" to explore and exploit hydrocarbons in the North Malvinas Basin, in violation of Argentine law. The case also targets directors, managers, statutory auditors and any representatives who have taken part in the project.

This is not the first time Buenos Aires has taken action over oil activity in the area. Argentina had already declared these operations illegal in 2012 and filed a similar complaint in 2015. In 2022 it sanctioned Navitas directly and, in December 2025, Javier Milei's government formally rejected investors' announcement they will pour €1.808 billion into the project to start production.

Sea Lion, the oilfield at the heart of the dispute

Navitas operates and controls 65% of the Sea Lion project, located around 220 kilometres north of the Falkland Islands, in waters disputed by Argentina and the United Kingdom. Its partner is the British company Rockhopper, which owns the remaining 35%. The project is in the development phase and is expected to start pumping crude oil in March 2028.

The two companies had already responded to the measures announced by Argentina before the criminal complaint was submitted. Following Milei's speech last Thursday, they issued a joint statement insisting that they operate under licences "legally granted" by the islands' government and with "the full and ongoing support" of the United Kingdom.

The companies stressed that they do not expect the Argentine measures to delay the Sea Lion project timeline. Rockhopper's shares fell by more than 6% on the London Stock Exchange after the announcement.

Ben Gvir urges Netanyahu to recognise Argentine sovereignty

The complaint against the subsidiaries of an Israeli oil company comes amid rising diplomatic tension between Israel and the United Kingdom. Ben Gvir called on Netanyahu to recognise Argentine sovereignty over the territory and to adopt sanctions against London "for as long as the occupation continues".

The Israeli minister accused the United Kingdom of seizing territory and oil resources that, he argued, belong to the Argentine people. Hours earlier, Israel's Finance Minister, Bezalel Smotrich, had called for the expulsion of the British ambassador to Israel.

The remarks come amid widening rifts between London and Tel Aviv over British policy towards Palestine. For the moment, Ben Gvir's words do not amount to a change in Israel's official position on the islands' sovereignty.

Milei steps up his offensive

President Javier Milei announced on Thursday that he intends to toughen sanctions on oil companies operating in the Falkland Islands under licences issued by the British territory. He also said he would send a bill to Congress that would extend sanctions to the suppliers of these companies and bar offenders from contracting with the Argentine state.

That same day he confirmed that he will revive plans to build a naval base in Ushuaia, around 700 kilometres from the islands. On Monday, Milei instructed Economy Minister Luis Caputo to give the project priority in the 2027 budget, which the government will send to Congress this month.

"These measures are part of a comprehensive policy aimed at strengthening the Argentine state's ability to defend its territory, protect its natural resources and safeguard its strategic interests," the government said in a statement.