Halliburton has ruled out working on the Sea Lion oil project near the Falkland Islands after Argentine federal authorities raised questions over potential criminal and civil enforcement related to hydrocarbon activities around the disputed territory.
The U.S. oilfield services provider said it had been in contact with Argentine federal authorities regarding any potential involvement in Sea Lion and confirmed that neither it nor its subsidiaries would conduct work on the project.
Halliburton also said it does not participate in hydrocarbon exploration or production activities in or around the Falkland Islands, known in Argentina as the Malvinas.
The statement comes as Argentine President Javier Milei's government steps up its response to hydrocarbon development around the islands, which are controlled by Britain but claimed by Argentina.
In September, Milei ordered a regulatory decree and proposed new legislation in response to the Sea Lion development. Argentine authorities subsequently opened sanction proceedings against 45 individuals and legal entities suspected of involvement in hydrocarbon exploration and production around the islands.
Halliburton said Argentine authorities had raised questions about criminal and civil enforcement of existing legislation, pending new criminal and civil legislation and existing right-to-contract certification regulations.
Sea Lion is operated by Navitas Petroleum, which holds a 65% interest, while Rockhopper Exploration owns the remaining 35%.
Rockhopper estimates the Sea Lion discovery contains about 1.7 billion barrels of oil in place, including 500 million barrels of independently audited 2C recoverable resources.
Argentina has opposed offshore hydrocarbon exploration around the Falkland Islands since drilling activity resumed there in 2010, when Buenos Aires formally protested the operations and challenged the legitimacy of UK-issued exploration licenses in the disputed area.