By Nicolás Misculin, Shadia Nasralla and Leila Miller
BUENOS AIRES, Sept 8 (Reuters) - Argentina's government has initiated sanctions proceedings against a total of 60 people and companies for participating in illegal oil exploration operations in the Falkland Islands, it said on Tuesday.
The move follows a televised address on Thursday by Argentine President Javier Milei, in which he vowed to sanction oil companies drilling in the British overseas territory as he stepped up the South American nation's sovereignty claims.
On Tuesday morning, the government said it had presented a criminal complaint against Israeli energy company Navitas Petroleum and its executives for operating in the Falkland Islands. Later in the day, officials said the government had initiated sanctions proceedings against 15 new subjects, in addition to proceedings against 45 people and companies it announced late last week.
According to a statement from the presidency, Foreign Minister Pablo Quirno filed the criminal complaint against several Navitas subsidiaries and partners operating in the territory, along with their corporate directors.
Navitas did not reply to a request for comment.
The government alleges the firms violated Argentine law by holding hydrocarbon exploration and exploitation licenses issued by Britain in the North Falkland Basin. The complaint would be based on current law covering oil and gas projects in areas claimed by Argentina. It was unclear whether a court had decided to open an investigation into the government's complaint.
The criminal complaint escalates a long-running sovereignty dispute between Argentina and Britain over the Falklands and could test whether Buenos Aires can use its legal system to disrupt a major offshore oil project backed by foreign investors and licensed by a self-governing British territory.
Milei has also announced plans to send a new bill to Congress which would intensify punitive action against companies involved in drilling activities in the Falklands.
SEA LION PROJECT IN FOCUS
Milei last week singled out the Sea Lion offshore oil project as he announced measures targeting companies involved in Falklands oil and gas activities, with penalties potentially extending to shareholders, directors and suppliers.
The Sea Lion field is operated by Tel Aviv-listed Navitas Petroleum, which holds a 65% stake. London-listed Rockhopper, also backed by Israeli investors, owns the remainder.
First oil from Sea Lion is expected in 2028, when Phase 1, which Rockhopper and Navitas approved for development last year, comes on stream at a rate of 50,000 barrels per day.
A Rockhopper spokesperson declined to comment on Argentina's latest statements on Sea Lion and referred questions to Navitas.
The companies have previously said the project holds valid licenses from the self-governing Falkland Islands and that they do not expect Milei's comments to have a material impact on its development. They have also pointed to UK support for the project.
Last week, Argentina's government shared with Reuters a list of "companies to sanction" which included Navitas, Rockhopper and Eco Atlantic, which owns a license adjacent to Sea Lion alongside Navitas. The government has not responded to a request for clarity about the types of sanctions it may be pursuing against these companies. A spokesperson for Eco Atlantic declined to comment.
(Reporting by Nicolas Misculin and Leila Miller in Buenos Aires and Shadia Nasralla in London; Editing by Daina Beth Solomon, Matthew Lewis and Nia Williams)
