More than 40 years after Britain and Argentina fought over the Falklands, another struggle is unfolding in the South Atlantic. This time the prize lies beneath the seabed.

It is called Sea Lion: an offshore oil development roughly 220 kilometres north of the Falklands. Its operator is Navitas Petroleum, an Israeli energy group listed in Tel Aviv, which holds 65% through a UK subsidiary. The remaining 35% belongs to Britain's Rockhopper Exploration.

In December 2025, the companies approved the project and secured its financing. Phase one will involve 11 subsea wells connected to a floating production vessel. The estimated funding requirement was US$1.8 billion to first oil and US$2.1 billion through completion. Production is targeted for 2028, with initial peak output of around 50,000 barrels a day.

This is no longer just a speculative exploration licence.

And the people behind it are worth examining.

Navitas chairman Gideon Tadmor is a major figure in Israeli energy. Before founding Navitas, he led companies involved in the Eastern Mediterranean's Tamar and Leviathan gas discoveries. That experience is now involved in a disputed corner of the South Atlantic.

But there is a distinction worth making: that history does NOT prove Falklands oil will flow into Israeli pipelines, or that the Eilat–Ashkelon / MED-RED oil corridor is part of this deal. No direct link has been established.

The politics are extraordinary. Argentina's President Javier Milei, publicly friendly towards Israel, is challenging a project with significant Israeli backing. In September 2026 he announced tougher measures against firms involved in Falklands oil development. Argentina also initiated international maritime arbitration against Britain. In October, Navitas said it was working to replace two contractors amid the pressure.

An Argentine court ordered a halt pending environmental review, but enforcement is uncertain and developers intend to continue.

Why the fury?

Argentina calls the islands Las Malvinas and claims sovereignty over them and nearby waters. Britain rejects the claim. The islanders, whose voices can get lost between capitals, voted overwhelmingly in 2013 to remain a British Overseas Territory. The Falkland Islands Government approved Sea Lion's development.

Britain administers the territory. Argentina contests sovereignty. And people actually live there.

The numbers need scrutiny, too. Reports have mentioned roughly 1.7 billion barrels of oil associated with Sea Lion. That does NOT mean 1.7 billion barrels of proven, recoverable reserves. Rockhopper's independent assessment put contingent resources across the wider field at about 917 million barrels; the first two northern development phases target around 319 million barrels.

Who stands to benefit? Shareholders and lenders expect returns. The Falklands expects jobs and tax revenue. Britain has strategic and diplomatic interests. Argentina sees resources extracted from territory it claims. And any offshore drilling in these remote, wildlife-rich waters raises questions about environmental safeguards and responsibility if something goes wrong.

Forty-four years after the 1982 war, oil has again brought the question of ownership into focus. Not only who controls a map, but who issues licences, who finances the project, who receives the profits, and who carries the risks.

The interesting question is not whether one nationality is secretly 'behind' everything. The documented paper trail is revealing enough: a British Overseas Territory, an Israeli-led operator, a British partner, Israeli institutional investors, international finance, and Argentina challenging the project.

Follow the licences. Follow the ownership. Follow the money. And don't forget the people who live there.

Reuters reporting: https://www.reuters.com/business/energy/israeli-investors-crosshairs-argentinas-milei-over-falklands-oil-project-2026-09-04/