Argentina escalates legal push against Falklands oil exploration firms

LONDON/BUENOS AIRES, Sept 15 (Reuters) - Argentina will file new legal complaints against companies exploring for oil near the Falkland Islands, the government said on Tuesday, escalating Buenos Aires' campaign against businesses operating in the British overseas territory.

The move is part of a broader push by President Javier Milei's government, which is also preparing legislation this week to toughen sanctions against companies operating in the Falklands. Analysts say that raises the prospect of wider tensions with Britain if Buenos Aires targets other parts of the islands' economy.

Argentine newspaper Clarin reported that a federal prosecutor had filed a request to open an investigation into executives and shareholders of Israel's Navitas Petroleum NVPTp.TA and Britain's Rockhopper Exploration RKH.L.

Government spokesperson Adrian Ravier said in a press conference that new complaints would be filed against firms operating in the Falklands, though he did not name them.

Milei's government has previously targeted Navitas and Rockhopper as Buenos Aires pursues its sovereignty claim over the archipelago, which Argentina calls the Malvinas.

Navitas did not immediately respond to requests for comment. Rockhopper declined to comment. Both companies have previously said the oilfield project holds valid licenses from the Falkland Islands government and ‌have indicated they ⁠do not expect Milei's actions to derail development.

Federal prosecutor Carlos Stornelli's office did not immediately respond to a request for comment.

Britain earlier on Tuesday sought to reassure companies doing business in the Falkland Islands, saying in guidance published on its government website that it supported all legitimate economic activity in the islands and backed the Falkland Islanders' right to regulate their economy and develop their natural resources, including hydrocarbons.

"The UK government's position is that Argentina has no right to exercise jurisdiction over the Falkland Islands or to apply its domestic law within the Islands, nor towards any companies or individuals participating in business in or connected with the Islands," Britain said in its guidance.

It added that it saw no legal basis for courts outside Argentina to enforce measures taken against such businesses.

Argentina invaded the islands in 1982 and fought a 10-week war over them before surrendering to Britain.