Rockhopper Exploration has insisted "threats by the Argentine government against businesses and individuals" are "not expected to have a material effect" on its Falklands oilfield.
UK firm Rockhopper, which is working on the Sea Lion field joint venture with Israeli company Navitas Petroleum, posted its half-rear results this morning.
It comes after recent comments from Argentine President Javier Milei who branded the Sea Lion project "illegal plundering of our resources" and issued a two-week deadline for work to halt or legal action would commence.
Rockhopper and Navitas are both adamant they have valid licences issued by Britain.
Now, Rockhopper has issued an update on the episode in its half-year results, which revealed a significantly improved financial performance on the first six months of last year.
The report states: "In recent weeks, comments and subsequent threats by the Argentine government against businesses and individuals connected with the Falkland Islands hydrocarbons sector have generated a period of heightened media and political attention.
"Both the Falkland Islands Government and the UK Government have publicly responded consistently and firmly throughout, describing the Argentine measures as illegitimate and without legal justification, and confirming the UK’s continued commitment to working with the Falkland Islands Government, a self-governing UK Overseas Territory, to protect its interests.
"Navitas, the Project operator, has recently confirmed that it operates pursuant to valid petroleum licences lawfully granted by the Government of the Falkland Islands, a self-governing UK Overseas Territory, with the full and ongoing support of the UK Government, and that recent developments are not expected to have a material effect on the development activities of the Sea Lion Project, including its development timetable."
Rockhopper reported a loss after tax of $3.4million for the six months ended June 30, 2026, a marked improvement from the $51million loss in the prior year's period.
It ended the period with $147million in cash and term deposits.
Samuel Moody, CEO of Rockhopper, commented: “This has been a landmark period for Rockhopper. First oil on NDA 1 remains targeted for Q1 2028, and Navitas' acquisition of the OSX-1 FPSO to accelerate the Central Development Area has driven a significant increase in the independent valuation of our interest in Sea Lion. Together with our recent capital raise, which leaves us fully funded to first oil, and the continued strong support of the UK and Falkland Islands Governments, we enter the second half of the year well positioned to deliver significant value to all stakeholders.”
FSTE100
The UK's flagship share index, the FTSE 100, was down 29 points at 10,708 shortly after opening this morning.
Brent crude oil futures were down 1%, sitting at $95.20 a barrel this morning.
Companies reporting
- Greggs - Q3 Trading Statement