UK Minister for Overseas Territories Uma Kumaran said the British government would continue to support businesses supplying goods and services to the islands, including companies involved in the hydrocarbons industry.
“The UK is clear: the Falkland Islands are British and they have the right to develop their natural resources as they see fit. This is an integral part of their right of self-determination,” Kumaran said in a statement published on Friday on the Home Office website.
Her comments followed an order by Argentine federal judge Mariel Borruto directing British and Israeli companies involved in the Sea Lion oil project to suspend development activities until Argentine authorities have conducted an environmental review and reached a decision.
The Sea Lion project is located about 220 kilometres north of the Falkland Islands. The court order covers drilling, offshore installations and related port construction, according to an Associated Press report.
The companies affected are Britain's Rockhopper Exploration and Israel's Navitas Petroleum, which are partners in the development of the offshore oilfield.
The legal action has heightened tensions over oil exploration around the islands, which Argentina claims as the Malvinas but have been under British administration for decades.
Reuters reported that Argentina has intensified legal action against companies involved in oil exploration near the Falkland Islands as President Javier Milei's government continues to pursue the country's longstanding sovereignty claim.
Kumaran said the British government was also concerned about what it described as continuing threats against businesses and individuals connected with the Falkland Islands.
“In recent weeks, Argentina has continued to threaten businesses and individuals supplying goods and services, directly and indirectly, to the Falkland Islands, including in the hydrocarbons sector.
“The UK Government and our diplomatic network stands fully behind those businesses and individuals. They have our full support.”
The Argentine government has also taken steps to strengthen its ability to penalise companies involved in natural-resource development around the islands.
On September 17, Argentina introduced legislation that would increase penalties for what it considers unauthorised exploitation of natural resources and potentially extend sanctions to companies, shareholders and suppliers connected to such activities.
The measures represent a broader effort by Buenos Aires to use legal and economic tools to reinforce its sovereignty claim, while Britain maintains that Argentina has no jurisdiction over the Falkland Islands or over businesses operating in connection with the territory.
Kumaran described Argentina's actions as unacceptable and rejected attempts to use international mechanisms against companies and individuals doing business with the islands.
“This is not the first time that an Argentine Government have made economic threats against the Islanders, yet the Falkland Islands economy continues to flourish.
“The UK stands in lockstep with the international community and any attempt to politicise international mechanisms against individuals for doing business with the Falklands are illegitimate.
“These charges against companies and individuals are unacceptable, with no legal justification.”
The latest dispute comes against the backdrop of a sovereignty disagreement that has persisted for generations. Argentina refers to the territory as the Malvinas and maintains that it is part of Argentine territory, while Britain administers the islands as the Falkland Islands.
The two countries fought a 10-week war over the territory in 1982 after Argentine forces invaded the islands. Britain subsequently regained control, but the sovereignty dispute has remained unresolved.
Oil exploration has become an increasingly important part of the disagreement because of the potential economic value of offshore hydrocarbon resources. For the Falkland Islands, development of natural resources is viewed as part of the territory's economic future, while Argentina has repeatedly objected to oil exploration in waters it considers to be under its sovereignty.
Kumaran said Britain would continue to work with the Falkland Islands Government to protect economic activity and opportunities in the territory.
“There are enormous opportunities available for businesses in the Falklands, and we will work tirelessly with the Falkland Islands Government to ensure their wishes are protected.”
The dispute has also spilled into international sport.
After Argentina's 2–1 World Cup semi-final victory over England on July 15, 2026, Argentina players Lisandro Martínez and Giovani Lo Celso displayed a banner carrying the words “Las Malvinas son Argentinas” — meaning “The Falklands are Argentine” — during celebrations.
The UK Government subsequently called on FIFA to investigate the display, citing regulations prohibiting political messaging at stadiums.
FIFA later opened an investigation into the banner and initiated disciplinary proceedings against the Argentine Football Association over several incidents at the World Cup, including the display of inappropriate messages.
The latest confrontation over the Sea Lion project therefore comes amid a wider deterioration in relations surrounding the Falklands/Malvinas issue, with the two governments maintaining sharply different positions over sovereignty, natural resources and the authority to regulate economic activity linked to the islands.