Argentina has launched criminal proceedings against Israeli energy company Navitas Petroleum for drilling for oil near the Falkland Islands without its approval. The move has increased tensions with Britain over the disputed South Atlantic territory. Argentina calls the islands the Malvinas and claims them as part of its territory, while Britain administers them as a British overseas territory.

Argentina and Britain fought a 10-week war over the Falklands in 1982. The conflict ended with Argentina surrendering after 74 days of fighting. The war killed 649 Argentine and 255 British troops. The dispute remains a highly sensitive issue in Argentina and continues to affect relations between the two countries.

The latest dispute centres on the Sea Lion oil project in the North Malvinas basin. Argentine President Javier Milei has opposed the project and accused Britain and its partners of taking unilateral action in the area. His government argues that such activities violate a United Nations resolution that calls on both Britain and Argentina to avoid unilateral actions concerning the islands until they settle their sovereignty dispute.

The Argentine government said it had filed a criminal complaint in Argentine courts against Navitas Petroleum for exploring the Sea Lion field without authorisation. Navitas holds the majority stake in the offshore project, while British company Rockhopper owns the remaining share. The oil field lies about 220 kilometres from the Falkland Islands.

Argentina has also taken legal action against Canadian company Eco Atlantic. The company holds a licence to explore an area next to the Sea Lion field. Argentina said the licence was issued by what it described as "the illegitimate government of the United Kingdom." The government has included company shareholders and senior officials in the criminal complaint.

The legal action covers shareholders, directors, managers, trustees, members of supervisory boards, administrators, agents and representatives of the companies. It also targets anyone who "participated in the criminal act." Argentina is relying on a 2011 law that allows authorities to impose serious penalties for unauthorised exploration of the country's continental shelf.

Under the law, those involved could face up to 20 years of disqualification from operating in Argentina. They could also face prison terms of up to 15 years for conducting exploration activities on Argentina's continental shelf without government approval.

Argentina has previously taken action against companies involved in oil exploration around the Falklands. In 2013, authorities imposed a 20-year ban on Rockhopper from operating in Argentine territory. Argentina accused the company of carrying out "illegal and clandestine" operations. Navitas received the same 20-year sanction in April 2022.

The Falklands lie around 600 kilometres east of Argentina's southernmost point. Britain has administered the islands for decades, while Argentina continues to press its sovereignty claim. The dispute remains an important political issue in Argentina, particularly because of the memories of the 1982 war.

The issue gained fresh attention after US President Donald Trump recently threatened to review Washington's position on the Falklands dispute. His comments raised concerns in Britain and were welcomed by Milei. The Argentine president has since taken a stronger position against British activities around the islands.

Milei said in a speech on Thursday that the "winds of change" were blowing in Argentina's favour on the Falklands. His remarks came after Trump's comments appeared to suggest a possible shift in the US approach to the dispute. London responded by reaffirming its position and defending its claim over the islands.

British Defence Secretary Wes Streeting wrote on social media on Friday, "The Falklands are British because Falkland Islanders choose to be British." Islanders strongly supported remaining under British rule in a 2013 referendum. An overwhelming majority voted to retain their status as a British overseas territory

The Falklands dispute remains deeply emotional for many Argentines. It has also shaped public sentiment around relations with Britain for decades. This contentious issue caused a row in sporting events, including Argentina's World Cup semi-final against England this year. Argentina won that match but later lost the final. The latest legal action could further increase tensions between Buenos Aires and London over the contested territory.