President Javier Milei’s decision to tighten sanctions against foreign companies operating in the Sea Lion exploration project around the Malvinas Islands has prompted a response from several international oil companies regarding the matter. In recent days, SLB (formerly known as Schlumberger), Halliburton, and Baker Hughes have declared their intention not to engage in the Sea Lion project, stating that they “conduct their operations in compliance with current regulations.” Experts indicate that a primary factor behind these companies’ decision to publicly distance themselves from the South Atlantic venture is the substantial allure of the Vaca Muerta field, which has attracted Argentina’s most significant investments in recent years. Considering its stage of development and capacity for production, it presents a significantly more tangible business opportunity for foreign investment compared to the initiatives presently undertaken by Navitas Petroleum and Rockhopper Exploration.
Daniel Dreizzen stated that Argentina is gaining “clout” in geopolitical and energy terms largely because of Vaca Muerta. The Sea Lion project will necessitate technology, financing, and the involvement of significant international oilfield service companies. Many of those same companies, he added, already operate in Argentina or are looking to expand their presence there. “Argentine restrictions on companies participating in hydrocarbon activities on the islands could take on much greater significance as a tool for exerting pressure,” he argued. In a diplomatic dispute that “has seen no substantial progress for decades,” he noted, Argentina now possesses a renewed opportunity bolstered by its relationship with the United States and its expanding hydrocarbon capabilities. Juan José Carbajales informed that Vaca Muerta’s significance arises from its status as a well-established, low-risk project with a century-long potential for gas and oil. Sea Lion, conversely, “is a gamble,” given the uncertainty surrounding its potential yield until drilling and operations commence.
Dreizzen estimated that the project off the coast of the Malvinas has 300 million barrels of reserves and a potential production of 50,000 barrels per day. Carbajales’ calculations produced a more elevated estimate: 200,000 barrels per day. However, he noted that this figure would have to compete against the one million barrels from Vaca Muerta projected for 2028, as well as the more than 1.5 million barrels estimated for 2032. Over the weekend, SLB, the world’s largest oil services company, announced that it will not participate in any activities in the Malvinas. The company confirmed that “it is not participating, nor does it plan to participate, in any bidding processes aimed at providing services for hydrocarbon projects in the Malvinas Islands or in the surrounding maritime areas.”
“SLB reaffirms its commitment to compliance with applicable regulations.” Halliburton also confirmed its non-involvement in the Sea Lion oil project or in “any related exploration or production activities taking place around the Malvinas Islands.” The company also stated that it “conducts its operations in full compliance with the laws and regulations of the Argentine Republic.” Baker Hughes, for its part, stated that it maintains “its commitment to complying with current regulations in the Argentine Republic, a country where it has contributed to the development of the energy industry for more than 70 years.”
