World
Falklands authorities extend oil licenses for five years with UK backing
The decision covers offshore permits and allows for an additional extension of up to two years. The announcement came before Javier Milei's address at the UN on Argentina's claim over the islands.
The authorities of the Falkland Islands announced a five-year extension of all offshore hydrocarbon production licenses, with the possibility of adding up to two more years. The measure, released this Monday, has the backing of the United Kingdom and came amid the dispute with Argentina over the exploitation of resources in the archipelago.
According to La Nacion, the official statement did not specify how many companies were covered by the extension, although the main beneficiary would be the Sea Lion project, linked to the consortium between Rockhopper Exploration and Navitas Petroleum, along with its subsidiaries Falklands Oil & Gas and Desire Petroleum. Radio Mitre specified that Navitas Petroleum holds a 65% stake in Sea Lion and Rockhopper Exploration 35%.
The decision was known a few days after new signs of British support for the companies operating on the islands and at the same time as measures promoted by the Argentine government. According to both media outlets, federal judge Mariel Borruto ordered work related to Sea Lion to be halted and ruled that the companies must refrain from continuing with the works or drilling. La Nacion added that the companies were ordered to report within ten days on the degree of progress of the project and that so far they have not responded.
Cheryl Roberts, head of the Trade, Industry and Mineral Resources area of the island government, said the extensions seek to provide operators with predictability so they can continue investing in and developing their areas. She also said those resources will be developed under safety criteria and environmental standards, according to the statement cited by La Nacion.
Radio Mitre noted that the licenses may be extended by two additional years if the companies comply with the established work. That outlet also indicated that the start of extraction at Sea Lion is scheduled for March 2028 and that the field is located about 220 kilometers from the islands.
The announcement came on the eve of Javier Milei’s trip to New York, where he will defend Argentina’s sovereignty claim at the UN General Assembly. For Argentina, the licenses granted by the British administration are illegal and any hydrocarbon activity in the area should have Argentine authorization, while the United Kingdom maintains that the islands’ inhabitants may administer those resources.
Fuentes
Sobre esta nota. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not do its own reporting on this fact.
