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Halliburton Withdraws from Falklands Oil Project
Developing
In Short: Halliburton has withdrawn from the Sea Lion oil project off the Falkland Islands, citing concerns over potential legal and regulatory issues raised by the Argentine government.
Halliburton has withdrawn from the Sea Lion oil project off the Falkland Islands, citing concerns over potential legal and regulatory issues raised by the Argentine government.
The Sea Lion project, which began in 2010 when UK-based Rockhopper Exploration discovered oil in the deep waters off the Falklands, has faced numerous challenges.
According to Halliburton, the Argentine government contacted the company regarding criminal and civil enforcement under existing legislation, proposed new measures, and regulations governing right-to-contract certification.
Argentine President Milei has instructed the Foreign Ministry and legal teams to initiate international arbitration against the UK for what he calls the 'illegal plundering' of resources through the Sea Lion Project in the North Malvinas Basin.
The Falkland Islands, known as the Malvinas in Argentina, have been a source of contention between the UK and Argentina for decades, with Argentina claiming the islands as its own.
Since the discovery of oil in 2010, the project has faced significant obstacles, including financial challenges due to the project's location and ongoing pressure from Argentina.
What this adds
Halliburton's decision marks a significant setback for the Sea Lion project, which has already encountered numerous delays and financial hurdles.
What's still developing
- The company’s declaration of non-involvement follows contacts with the Argentine government, Halliburton has said.
- The Falklands are “historically and legally” Argentine, Milei said in a televised address in early September, apparently emboldened by the recent hints from U.S. President Donald Trump that the U.S. could review its neutrality on the issue and may not back the UK in the Falklands dispute because of the lack of UK support for the U.S. war in Iran.
- Halliburton, in fact, refuses to take part in any oil or gas development around the contested islands.
- Since the beginning, however, work on the discovery has faced a series of setbacks due to its capital-intensive nature because of its location plus pressure from Argentine, which repeatedly signaled it very much minded offshore oil development off the Falklands, which it claims as its own.