Threats by Government
British-based oil exploration company has said it does not expect threats by the Argentinian government to have a ‘material effect’ on its offshore oil project near the Falkland Islands.
London-listed Rockhopper saw its shares slide on Friday morning after Argentina’s president said he will sanction firms working off the coast of the territory.
Rockhopper and Israeli partner Navitas are working together on the Sea Lion project to extract oil north of the Falklands, which is expected to start delivering oil in 2028.
On Friday, Argentinian President Javier Milei said he would sign decrees to introduce sanctions against any companies working on oil production in the area.
He declared the Sea Lion oilfield a clear and present danger to the country’s claims.
In a statement, Rockhopper and Navitas said: “The partnership operates pursuant to valid petroleum licences lawfully granted to it by the government of the Falkland Islands, a self-governing UK Overseas Territory, and with the full and ongoing support of the UK Government.”
“The partnership believes that the recent developments are not expected to have a material effect on the development activities of the Sea Lion project, including the timetable for completion of the project’s development.”
The oil field is believed to contain the equivalent of 900 barrels of oil.
