Argentina to Build Naval Base, Sanction Firms Over Falklands Oil
Argentina will build a naval base in Tierra del Fuego and sanction firms linked to Falklands oil exploration, citing US reconsideration of its stance.
Argentine President Javier Milei has announced a series of measures aimed at countering British-linked oil exploration near the Falkland Islands, which Argentina calls the Malvinas. In a televised address on Thursday, Milei said the government would sign an emergency decree to fund a new integrated naval base in Tierra del Fuego, the country's southernmost province, and enhance telecommunications capabilities. He described the base as a step toward making Argentina the most important logistical hub in the South Atlantic.
Milei also referenced recent comments by US President Donald Trump, who said Washington was reevaluating its historical position on the islands' sovereignty. Milei framed the potential shift as recognition of Argentina's strategic value as a Western-aligned partner. "The United States is considering this change in position because they know that Argentina is a reliable partner," he said.
The president singled out the Sea Lion oil project, operated by Navitas Petroleum and Rockhopper Exploration, which is scheduled to begin offshore drilling in the coming months. Argentina considers the project illegal exploitation of resources in waters it claims as its own. Milei warned that any further encroachment on the islands would be treated as a violation of national security.
He announced plans to strengthen early detection mechanisms and impose sanctions on companies, shareholders, directors, and suppliers involved in unauthorized activities around the islands. Firms directly or indirectly linked to such projects would be disqualified from operating in Argentine territory.
The move marks a notable shift for Milei, who has previously faced domestic criticism for warming ties with Britain and expressing admiration for former Prime Minister Margaret Thatcher. The Falklands sovereignty dispute remains a rare issue of broad political consensus in Argentina, offering Milei a chance to rally support amid economic difficulties at home.
Argentina claims it inherited sovereignty over the islands from Spain and says Britain has occupied them illegally since 1833. Britain rejects that claim, citing the islanders' preference to remain a British overseas territory. The 1982 war over the islands killed hundreds of Argentine and British service members.