Rockhopper and Navitas shares fall as operators defend Sea Lion timetable

Shares in Rockhopper Exploration and Navitas Petroleum, companies developing the Sea Lion field off the Falklands, dropped on Friday after Argentine President Javier Milei announced tighter sanctions on unauthorized operations in the region. Both companies issued a joint statement asserting they anticipate no impact on the project's development timeline or activities.

Rockhopper's stock fell more than 10% on the London Stock Exchange, while Navitas' shares declined about 2.3% on the Tel Aviv exchange. The companies emphasized that their operations comply with valid petroleum licenses granted by the Falkland Islands government and supported by the UK government. Milei stated that the project is slated for offshore oil production in early 2027 with first oil in 2028, and the consortium's schedule remains unchanged.

Navitas holds a 65% stake in the project, with Rockhopper contributing 35%. The final investment decision for the first phase of development, located 220 kilometers north of the archipelago in 450 meters of water, was made in December 2025 for $1.8 billion. Reserves are estimated at 1.7 billion barrels. The measures announced extend a regime in place since 2012, with Argentina's Energy Secretariat declaring Rockhopper's activities clandestine and the Foreign Ministry warning those involved in unauthorized operations.

Environmental lawyers and 1982 war veterans also filed a lawsuit in Argentina challenging the permits and potential environmental impacts of the project.