The British oil company advances in Malvinas and makes the final announcement of crude oil production

An Anglo-Israeli consortium with a total investment of $2.1 billion is beginning 35 years of oil production in the Malvinas, with first oil in 2028

12/11/2025 – 10:05 a.m

British oil company Rockhopper Exploration plc (RKH) told the market today that its board made the final investment decision (FID) for Phase 1 of the Sea Lion field north of the Malvinas Islands, once again disregarding Argentina’s claim to sovereignty over the islands and their resources.

Rockhopper’s partner, who will act as operator, is the Israeli Navitas Petroleum Development and Production Limited also approved the project, confirming a crucial step in the exploitation of hydrocarbons in the Falkland Islands’ northern marine area.

The approval of the FID by both companies was subject to the validation of the financing arrangements necessary for the implementation of the project. Financial close is expected in the coming weeks, subject to customary conditionsAt that time, Rockhopper’s previously announced $140 million offering will be completed.

The initiative has all permits and approvals required at that timeincluding the development and production program granted by the Government of the Malvinas Islands for Phases 1 and 2 of the Northern Development Area. Following these approvals, Sea Lion’s licenses will move into the exploitation phase, with an initial term of 35 years.

British oil company advances in Malvinas

The total financing requirement under FID is $1.8 billion to achieve First Oil and $2.1 billion to fully complete the project.

The financing exists of $1,000 million in senior debt, of which $350 million is attributable to RockhopperThe balance will be raised through joint venture capital and cash flows to First Oil. The net capital requirement for Rockhopper will be approximately $112 million, including capital overage support of 5%.

Estimated production forecasts Phase 1 is expected to reach 170 million barrels (59.5 MMb net for Rockhopper) with a maximum production of around 50,000 barrels per day. The first Phase 1 oil production is expected to occur in 2028.

Independent appraisal by Netherland, Sewell & Associates, Inc 2C net resources of 255 Mb/d for Rockhopperwith a net present value (NPV10) of US$1,850 million at a Brent oil price of US$70.

As part of the FID Navitas has secured important commercial contractsincluding the chartering of a floating production, storage and offloading unit (FPSO), a drilling platform contract and subsea services agreements.

Geopolitical implications and the position of Argentina

In September, on the occasion of General Debate of the 80th Session of the United Nations Assembly, AndPresident Javier Milei reaffirmed Argentina’s claim to sovereignty over the Malvina Islands, South Georgia Islands, South Sandwich Islands and surrounding maritime areas “which remain under illegal occupation.” and called on the UK to resume bilateral negotiations.

The decision by the Anglo-Israeli business consortium to advance exploitation in the sea lion area stands in this diplomatic context Tensions between Argentina and the United Kingdom are rekindling over the sovereignty dispute the Malvinas Islands and their resources.

The Argentine Foreign Ministry had previously expressed this “strongly rejects” Navitas’ activities and called them illegal for development in disputed territory without Argentine permits. Argentina maintains that any unilateral exploration and exploitation is contrary to United Nations General Assembly resolutions calling on both governments to resume sovereignty negotiations.

In April 2022, the Argentine Ministry of Energy Israeli company Navitas declared “secret” for operating without authorization on the national territory that it considers to be national territory.