Argentina presents criminal complaint against Navitas Petroleum over Falklands drilling

By Nicolás Misculin, Shadia Nasralla and Leila Miller BUENOS AIRES, Sept 8 (Reuters) - Argentina's government said on Tuesday it had presented a criminal complaint against Israeli energy company Navitas Petroleum and its executives for operating in the Falkland Islands. The move follows remarks lastThursdayby Argentine President Javier Milei, who vowed to sanction oil companies drilling in the British overseas territory as he stepped up the South American nation's sovereignty claims. According to a statement from the presidency, Foreign Minister Pablo Quirno filed the criminal complaint against several Navitas subsidiaries and partners operating in the territory, along with their corporate directors. Navitas did not reply to a request for comment. The government alleges the firms violated Argentine law by holding hydrocarbon exploration and exploitation licenses issued byBritain in the North Falkland Basin. The complaint would be based on current law covering oil and gas projects in areas claimed by Argentina. It was unclear whether a court had decided to open an investigation into the government's complaint. The criminal complaint escalates a long-running sovereignty dispute between Argentina and Britain over the Falklands and could test whether Buenos Aires can use its legal system to disrupt a major offshore oil project backed by foreign investors and licensed by a self-governing British territory. Milei has also announced plans to send a new bill to Congress which would intensify punitive action against companies involved in drilling activities in the Falklands. SEA LION PROJECT IN FOCUS Milei last weeksingled out the Sea Lion offshore oil project as he announced measures targeting companies involved in Falklands oil and gas activities, with penalties potentially extending to shareholders, directors and suppliers. The Sea Lion field is operated by Tel Aviv-listed Navitas Petroleum, which holds a 65% stake. London-listed Rockhopper, also backed by Israeli investors, owns the remainder. First oil from Sea Lion is expected in 2028, when Phase 1, which Rockhopper and Navitas approved for development last year, comes on stream at a rate of 50,000 barrels per day. A Rockhopper spokesperson declined to comment on Argentina's latest statements on Sea Lion and referred questions to Navitas. The companies have previously said the project holds valid licenses from the self-governing Falkland Islands and that they do not expect Milei's comments to have a material impact on its development. They have also pointed to UK support for the project. Last week, Argentina's government shared with Reuters a list of "companies to sanction" which included Navitas, Rockhopper and Eco Atlantic, which owns a license adjacent to Sea Lion alongside Navitas. The government has not responded to a request for clarity about the types ofsanctions it may be pursuing against these companies. Eco Atlantic did not immediately respond to a request for comment. (Reporting by Nicolas Misculin and Leila Miller in Buenos Aires and Shadia Nasralla in London; Editing by Daina Beth Solomon and Matthew Lewis)