Harbour Energy is facing sanctions from Argentina over an oil and gas project in contested waters off the Falklands.
Earlier this week the country’s energy secretary Dario Martinez told reporters that a sanctions process has been launched against Harbour Energy, along with subsidiary Chrysaor Holdings and Navitas Petroleum of Israel.
Harbour Energy, one of the largest producing firms in the UK and headquartered in Aberdeen, is developing the Sea Lion project in the Falklands.
Reuters reported that Mr Martinez said: “The companies are not authorized to operate nor have they requested any type of authorization.”
He added that the licences were granted by the “illegitimate authorities” of the Falklands Islands.
Harbour Energy had no comment when approached by Energy Voice.
The company holds a 60% stake in the development which is targeting 250million barrels of gross resource using an FPSO.
However Harbour Energy, formed through the merger of Chrysaor and Premier Oil earlier this year, said work on phase 1 of Sea Lion was suspended due to market conditions in 2020, which saw a devastating price crash due to Covid.
A Foreign Office spokesperson said: “The United Kingdom has no doubt about its sovereignty over the Falkland Islands and surrounding maritime areas.
“Hydrocarbon exploration in the Falkland Islands is a legitimate commercial venture regulated by the Falkland Islands Government and Argentine domestic law does not apply in the Falkland Islands.”
The UK and Argentina have disputed ownership of the Falklands for years, leading to a war in 1982.
Argentina claims sovereignty over the British-ruled islands which it calls the Malvinas.
The sanctions add to those levelled against eight firms who faced similar measures between 2011 and 2015.
The South Atlantic News Agency reported that the sanctions could mean companies directly or indirectly involved can face five to 20 years disqualification from operating in Argentina.
It also reported that multinational organisations such as the Latin American Energy Organisation, the Ibero-American Summit, comprised of heads of state of Spanish and Portuguese speaking nations, and the UN “Group of 77” plus China.
Argentina has appointed a Malvinas minister and said it will redraw maps to emphasise its claim on the region.
The Falklands War saw 649 Argentinian and 255 British soldiers killed over the course of the 10-week conflict.
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