UK warns Falklands oil project at stake in Hamburg tribunal

Britain has cautioned that Falkland Islanders could suffer serious harm if Argentina manages to stop an offshore oil scheme, according to The Guardian. Ellie Reeves, the attorney general of England and Wales, put the government’s case before the Hamburg-based body known as Itlos.

Reeves argued that the islands would lose billions of pounds needed for their future. In her words, the outcome would be devastating for residents. The hearing spans two days, with the second session scheduled for Wednesday.

What Argentina is asking for

Buenos Aires has requested interim measures that would halt drilling until a later arbitration concludes. It contends that the Sea Lion scheme carries environmental dangers. Argentina also points to a 1976 United Nations text urging both parties to avoid acting alone while the sovereignty question stays open, and says Britain’s go-ahead for the scheme goes against that text.

Argentina wants London to pledge that drilling will end, so that the existing state of affairs stays in place. Mario Oyarzábal, legal adviser to Argentina’s foreign ministry, told the judges that islanders hold no entitlement to determine sovereignty. He said the oil belongs to the people of Argentina.

Oyarzábal further claimed that revenue from the oil would pay for the military installation that backs Britain’s practical control of the territory. He stated that his government was willing to talk about every element of the matter, including the recent worsening of the disagreement attributed to the UK.

Britain’s counter-arguments

Reeves told the tribunal that Argentina’s real aim was to press its old claim to sovereignty through a procedural request. She stressed that islanders may use their own natural wealth, a right tied to self-determination. In her view, a court focused on maritime law cannot decide who owns territory.

Sir Michael Wood KC, also appearing for Britain, cautioned that the court risked losing members if it went too far by granting interim orders. Such orders, he said, belong to rare situations only. When the Guardian asked whether Britain would follow the ruling, Reeves said she respects the court but would not anticipate its decisions.

The Sea Lion scheme and wider context

The scheme lies in the North Falkland basin and is run by Israel’s Navitas with British partner Rockhopper. Drilling is planned to begin next March, and extraction is expected from 2028 over a 35-year period. It is said to have the potential to roughly double GDP per head on the islands, with about £8bn of cumulative gains over its life.

UK lawyers argued that the chance of a blowout or leak is small and that the operators have measures in place to reduce it. Milei has described the project as illegal. Argentina invaded the islands in 1982, and the fighting cost 649 Argentine service members, 255 British service members and three islanders their lives. This is the first occasion on which core questions about the islands have been argued before an international court. Princess Anne reached Port Stanley on Monday as a sign of support.

Frequently asked questions

Sources

• The Guardian: Falkland Islanders face ‘devastating consequences’ if Argentina blocks oil project, says UK

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