Major Oil Service Firms Withdraw from Falkland Islands Projects Following Milei Sanctions

Three of the world's largest oilfield services companies, SLB, Baker Hughes, and Halliburton, have announced they will not participate in hydrocarbon projects in the Falkland Islands. These statements follow a decree by Argentine President Javier Milei that toughens sanctions and controls for companies operating in the archipelago's maritime spaces without Argentine authorization. The Argentine government has already initiated sanction proceedings against 45 entities linked to oil exploration in the region, including companies from the US, UK, Canada, Israel, Denmark, and the Netherlands.

President Milei announced the measures during a televised address, stating he would submit a bill to Congress to increase penalties against those exploiting natural resources in the islands. He also proposed the creation of a national security council and increased funding for a naval base in Tierra del Fuego. While the British government stated its position remains unwavering, the Sea Lion oil project, led by Navitas Petroleum and Rockhopper Exploration, maintains that the sanctions will not change its plans to begin production in 2028.

The move has generated broad domestic support in Argentina, crossing political divides. Some political opponents and veterans, who previously criticized Milei for praising former British Prime Minister Margaret Thatcher, have welcomed the shift toward a harder line on sovereignty. Analysts suggest this change in posture may be influenced by Milei's low approval ratings and recent suggestions from Donald Trump that the U.S. could reconsider its neutral stance on the dispute.