Britain and Argentina clashed at an international tribunal in Hamburg on Tuesday over Argentina’s request to suspend an offshore oil project near the Falkland Islands, with the UK warning that a halt would threaten billions of pounds in potential revenue for islanders.

According to reporting by Daniel Boffey in The Guardian, Argentina is seeking provisional measures from the International Tribunal for the Law of the Sea to stop drilling at the Sea Lion oilfield while further arbitration takes place. It argues that the project poses environmental risks and breaches a 1976 UN resolution calling on both countries to avoid unilateral action while their sovereignty dispute remains unresolved.

Ellie Reeves, representing the British government, argued that Argentina was using the proceedings to advance its claim to the South Atlantic islands. She said the tribunal had no role in deciding sovereignty and that islanders had a right to develop their natural resources.

“The measures sought would have devastating consequences for the Falklands people,” Reeves told the tribunal, warning that suspending drilling would kill the project.

Argentina’s chief foreign ministry legal adviser, Mario Oyarzábal, disputed the islanders’ right to decide ownership of the surrounding resources. He said Argentina was prepared to negotiate all aspects of the dispute over the islands, known in Argentina as the Malvinas.

Oyarzábal also argued that Argentina would bear the consequences of an oil spill. UK lawyers responded that the risk was low and that the companies involved had taken steps to mitigate it.

The Sea Lion project, led by Israeli company Navitas and British partner Rockhopper, is scheduled to begin drilling in March 2027, with oil production expected from 2028 and continuing for 35 years, The Guardian reported.

Asked by the newspaper whether Britain would comply with the tribunal’s ruling, Reeves said she respected the institution but would not anticipate its decisions.

The two-day hearing is scheduled to continue Wednesday. No ruling was reported.

Sources