Argentina's Milei targets Israeli investors in Falklands oil dispute

Argentine President Javier Milei has escalated a long-running sovereignty dispute by targeting companies involved in offshore oil exploration near the Falkland Islands, a move that places Israeli investors at the centre of the controversy.

On Thursday, Milei singled out the Sea Lion project, operated by Tel Aviv-listed Navitas Petroleum, which holds a 65% stake. The remaining 35% is owned by London-listed Rockhopper Exploration. Israel-based funds — Noked Capital, Brosh Funds and ION Fund Management — are among Rockhopper's top five shareholders, each holding between 4.6% and 9.2%. Navitas chair Gideon Tadmor, a prominent figure in Israel's energy sector, owns about 9% of the company.

Buenos Aires considers the licences for the project illegal, arguing the islands are Argentine territory. Both companies were already disqualified from operating in Argentina for 20 years over the licences, according to a December 2025 statement on the Argentine embassy's website in Britain.

Navitas and Rockhopper have defended the project, saying they hold valid licences granted by the Falkland Islands government, a self-governing UK Overseas Territory, with UK government support. They said they do not expect Milei's comments to materially affect development.

Shares in Navitas and Rockhopper fell as much as 6% and 12% respectively on Friday.

Milei, a strong supporter of Israel, has recently deepened ties with the country, signing cooperation agreements in April. Argentine Foreign Minister Pablo Quirno said the sanctions threat would not harm bilateral relations, noting that the companies are already under sanction in Argentina.

The Sea Lion field, discovered in 2010, lies about 140 miles north of the Falklands and holds an estimated 1.7 billion barrels of oil. First oil is expected in 2028, with Phase 1 capital expenditure projected at $2.2 billion. Navitas took over operatorship in 2022.