London-listed oil driller suffers sharp sell-off over Milei Falklands threats
Rockhopper, an London-listed oil exploration firm, is battling to slow an investor sell-off after Argentina’s president vowed to sanction any oil companies working near the Falkland Islands. In a national address, Javier Milei emphasised Argentina’s claim over the British territory and promised to sanction any oil companies working there as part of the “British occupation”. [...]
Oil exploration company Rockhopper, listed in London, is facing a significant decline in investor confidence following President Javier Milei of Argentina's threat to sanction oil companies operating near the Falkland Islands. Milei, in a national address, asserted Argentina's claim over the British territory and threatened sanctions as part of his "British occupation" narrative.
Rockhopper, in partnership with Navitas, is involved in the Sea Lion oil field north of the Falklands. The company's shares plummeted over 10 percent to 69p in early trading following Milei's comments.
Milei specifically targeted the Sea Lion oil project, describing it as a "clear and present danger" to Argentina's claim over the islands. He warned that if Argentina does not act swiftly in the coming months, the company could gain access to oil resources that have never been exploited before. Rockhopper and Navitas, however, firmly denied that Argentina's threats would materially impact their oil delivery.
They emphasized that they operate under valid petroleum licenses granted by the Falkland Islands Government, a self-governing UK Overseas Territory, with the full support of the UK government. Rockhopper expects to start delivering oil from the Sea Lion project in early 2028 and has invested $350m (£259m) in debt to the project, owning 35 percent of it.
Milei's speech has heightened tensions between Argentina and the UK, a conflict that had surfaced again this summer with Argentine footballers facing criticism for displaying a banner supporting Argentina's claim to the Falklands after their World Cup semi-final victory against England. Milei declared the Falklands "Argentinian" and asserted that the islanders have no legitimate right to self-determination.
The UK government firmly rejected Milei's claims, with Foreign Secretary Ed Miliband stating that the Falklands are "British and will remain so," grounded in international law. Defence Secretary Wes Streeting reaffirmed Britain's absolute and unshakeable commitment to the territory. Milei's remarks seem to reflect more about Argentina's domestic politics than about the actual situation in the Falklands, according to sanctions expert John Binns.
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