Malvinas government extends offshore drilling licenses for 5 years
The decision comes amid Milei’s push to harden sanctions against oil firms operating in the area without Argentine authorization La entrada Malvinas government extends offshore drilling licenses for 5 years se publicó primero en Buenos Aires Herald .
The Malvinas government has extended all existing offshore drilling licenses for an additional five years, following President Javier Milei's efforts to impose stricter sanctions on oil companies operating in the region without Argentine approval. The extension, supported by the UK government, also includes the potential for a further two years of extensions if companies finalize their work programs.
Cheryl Roberts, a member of Malvinas' Legislative Assembly and Commerce, Industry, and Mineral Resources head, stated that these extensions offer certainty for operators, enabling continued investment and development in their designated areas. The move has heightened tensions with Argentina over the advancement of oil projects in the South Atlantic.
The Milei administration has submitted a bill to Congress to deem permits granted by the Malvinas administration null and void. Recently, the government has intensified criminal charges, administrative actions, and sanctions against companies and shareholders associated with these operations. President Milei is scheduled to speak at the United Nations General Assembly on Wednesday, where he is anticipated to argue for Argentina's sovereignty over the islands.
The primary focus is on Sea Lion, an oil project in the northern Malvinas Islands basin, approximately 220 kilometers from the archipelago. Navitas Petroleum, an Israeli company owning 65% of the project, and British company Rockhopper Exploration, holding the remaining 35%, are leading the initiative, with plans to commence production in 2028 and target a production rate of 50,000 barrels per day.
Navitas Petroleum Atlantic Limited also acquired a 65% stake in PL001, a block adjacent to Sea Lion, to expedite the evaluation and development of the adjacent block. The project's potential revenue from royalties is estimated at $2 billion. The Malvinas Department of Mineral Resources is collaborating with license holders to establish expanded work programs for the new period, potentially involving commitments to drill extra appraisal wells.
Written by urgent.news from Buenos Aires Herald's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
