Israeli energy interests have found themselves at the center of a diplomatic dispute after Argentine President Javier Milei announced new sanctions against companies involved in oil drilling near the disputed Falkland Islands.
Milei, one of Israel’s most outspoken international allies, on Thursday singled out the Sea Lion oil project as a key target. The measures could potentially extend beyond the companies themselves to shareholders, directors and suppliers.
Argentine President Javier Milei
(Photo: Nelson ALMEIDA / AFP)
The project has extensive Israeli ties. Sea Lion is operated by Navitas Petroleum, a Tel Aviv-listed Israeli company that owns a 65% stake. Navitas Chairman Gideon Tadmor, a prominent figure in Israel’s energy sector, owns about 9% of the company.
The remaining 35% is held by London-listed Rockhopper Exploration. Three Israeli investment funds, Noked Capital, Brosh Funds and ION Asset Management, are among Rockhopper’s five largest shareholders, with stakes ranging from 4.6% to 9.2%.
Navitas and Rockhopper said they hold valid licenses and do not expect the sanctions to have a material impact on the project. Navitas said in a statement that the partnership operates under petroleum licenses legally issued by the Falkland Islands government, a self-governing British overseas territory, and with continuing support from the British government.
Markets nevertheless reacted sharply. Navitas shares fell as much as 6%, while Rockhopper dropped as much as 12%. Milei’s move creates an unusual tension in Argentina’s otherwise close relationship with Israel. In April, the Argentine president met Prime Minister Benjamin Netanyahu and signed cooperation agreements inspired by the Abraham Accords.
Argentine Foreign Minister Pablo Quirno said the latest measure would not affect relations with Israel and noted that the companies had already been under Argentine sanctions since December 2025.
The Sea Lion field lies about 225 kilometers north of the Falkland Islands and is estimated to contain around 1.7 billion barrels of oil. First production is expected in 2028 under the project’s initial development phase, which received a final investment decision last year and carries an estimated investment cost of $2.2 billion.