Israeli company, Navitas Petroleum, has recently announced that it will undertake activities near the Falkland Islands, a project the Argentinian government decried as "unilateral and illegitimate."

Argentina is reportedly delaying moving its embassy to Jerusalem due to bilateral tensions relating to an Israeli company’s plans to drill oil from a field near the Falkland Islands. This was first reported by N12 on Sunday.

Both Argentina and the United Kingdom consider the Falkland Islands to be their sovereign territory, and the matter remains disputed.

The opening of Argentina’s new embassy in Jerusalem was scheduled to take place on Independence Day 2026 but has allegedly been suspended. The ties between the two countries have become very strong under President Javier Milei. The Argentinian leader is considered one of Israel’s strongest allies in South America. However, the new contretemps may lead to a cooling of relations.

The tension is said to concern an Israeli company named Navitas Petroleum, which announced recently that its British subsidiary, Navitas Petroleum Development and Production, will undertake activity in the South Atlantic Ocean. Navitas said it would partner with British company Rockhopper Exploration, which focuses on the Falkland Islands.

However, between January 2 and 7, 2026, a series of filings with the London Stock Exchange showed that more than 18% of Rockhopper’s shares are now held by three funds in Tel Aviv and Herzliya. Navitas plans to extract oil at a rate of 50,000 barrels per day by 2028 from the offshore oil field, known as Sea Lion. The Falklands government has already permitted the project, which is valued at $1.8 billion.

Argentinian Foreign Ministry declares Navitas plan 'unilateral and illegitimate'

However, the Argentinian government has vehemently rejected the project. Its foreign ministry released a statement on December 11 saying the companies had not obtained permits from the relevant Argentine authority and that the plans are “unilateral and illegitimate.”

The statement pointed out that any unilateral exploration and exploitation of renewable and non-renewable natural resources in areas subject to sovereignty disputes is contrary to the provisions of the United Nations General Assembly and the Special Committee on Decolonization. Additionally, according to Argentinian law, hydrocarbon exploration and/or exploitation activities may not be carried out in the entire Argentine continental shelf without due authorization from the Argentinian authority.

The ministry then warned of “potentially irreversible future consequences,” such as legal and judicial measures, should the plan proceed.

Both Rockhopper and Navitas are banned in Argentina for drilling without authorization. Argentinian sources told N12 that they consider the oil drilling to be “the theft of a natural resource that belongs to them.”

Israeli Foreign Minister Gideon Sa’ar addressed the matter directly in late December 2025, noting that Navitas plans to operate in “an area where sovereignty is disputed between Argentina and the United Kingdom” and that “although this concerns a private company and not an activity in which the Government of Israel is involved in any way, we regret the difficult feelings this has caused in Argentina in this context.”

“Israel has special relations with Argentina under the leadership of President Dr. Javier Milei that are held in deep esteem by the people of Israel,” Sa’ar said, adding that he hopes that the dispute between Argentina and the United Kingdom will be resolved through dialogue.

Falklands dispute

The UK has exercised de facto sovereignty over the Falkland Islands since 1833, but the British claim over the territory dates back to 1690. Argentina’s continual rejection of British sovereignty prompted its invasion of the islands in 1982, which led to the Falklands War. The UK won the war and in 1983 passed a law granting the islanders full British citizenship under the British Nationality (Falkland Islands) Act 1983.

Falkland Islanders overwhelmingly wish to remain a British Overseas Territory. In a 2013 referendum, 99.8% voted to maintain their current status, a choice reinforced by their government’s consistent assertion of their right to self-determination, a principle enshrined in their constitution.

The Argentinian Republic, however, claims sovereignty over the Falklands, as well as South Georgia and the South Sandwich Islands.

The Jerusalem Post reached out to the Argentinian embassy, Israel’s Foreign Ministry, and Navitas for comment