Argentina Issues Decree to Sanction Unauthorized Hydrocarbon Activity in Malvinas

The Argentine government has published Decree 868/2026, which designates the Ministry of Foreign Affairs, International Trade and Worship as the authority responsible for enforcing Law 26.659. This law provides for sanctions against entities that develop or facilitate hydrocarbon exploration and exploitation on the Argentine continental shelf without authorization. The decree establishes a formal procedure for identifying violations: government agencies must report suspected activities within five business days, after which the Ministry may open a summary proceeding. Presumed offenders have ten business days to present a defense, and the authority must issue a resolution within ten business days following that defense. Potential sanctions include disqualifications ranging from five to twenty years or the reversion of hydrocarbon concessions to the state.

Beyond the sanctioning process, the government is integrating these controls into investment approvals. Entities seeking to join the Incentive Regime for Large Investments (RIGI) or applying for hydrocarbon permits must now provide sworn statements regarding their compliance with Law 26.659. This includes a review of both the project and its direct or indirect participants. One report emphasizes that this focus on logistics is critical because offshore operations rely heavily on a network of port services and supplies to function.

Foreign Minister Pablo Quirno stated that companies must choose between operating in the disputed Malvinas region or doing business in Argentina, specifically mentioning the Vaca Muerta region. Quirno also noted that Chile would provide logistical support to Argentina regarding the Malvinas. Regarding the Sea Lion oil project involving Navitas Petroleum and Rockhopper Exploration, Quirno asserted that targeting this project does not harm relations with Israel. While the center left source frames the move as a strategic defense of national sovereignty and a warning to oil companies, the center right source frames the event as a reinforcement of administrative control mechanisms and investment verification procedures.