Sea Lion oil project suspended by Argentine federal court

A federal judge in Río Grande, Argentina, has ordered the suspension of the Sea Lion oil project located in the northern basin of the Falkland Islands. The precautionary measure, issued by Judge Mariel Borruto, halts all drilling, subsea installations, and exploitation activities.

The ruling follows legal actions brought by the Centro de Excombatientes Islas Malvinas La Plata and the Asociación Civil de Abogados, Abogadas y Profesionales Ambientalistas. The primary legal basis for the suspension is the lack of a required environmental impact assessment as mandated by Argentine law.

The decision specifically affects the British company Rockhopper Exploration PLC and the Israeli firm Navitas Petroleum Development and Production Limited. The project aimed to extract between 50,000 and 55,000 barrels of oil per day starting in 2028.

In addition to halting physical works, the court has prohibited new financing, payments, or transfers related to the project. The companies have been granted 10 days to submit a sworn statement detailing their drilling schedules, contractors, and environmental contingency plans. The ruling is a precautionary measure and does not constitute a final judgment on the merits of the case.