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up to date · reviewed Sep 4, 2026
In force since Apr 13, 2011

Whoever supplies an oil company operating in the Falklands can no longer operate here — and the rule dates from 2011

Law 26,659 (Official Gazette 13-Apr-2011), amended by Law 26,915 (Official Gazette 09-Dec-2013)
in forceNATIONAL Energy and natural resources

Bans producing hydrocarbons on the Continental Shelf without Argentine authorisation, and reaches whoever sells to them or handles their logistics. 5 to 20 years' disqualification.

The other rules on this subject43

Energy: free export of hydrocarbons and gasDecretos 1057/2024 and 1060/2024in force
The State reorders the trunk gas pipelines and forces firm transportation contracts to be redrawnRes. SE 66/2026 (Official Gazette, Mar 13, 2026) + Res. ENARGAS 409/2026in execution
Hydrocarbons: the pre-export local offer fallsSE Res. 166/2026 (Official Gazette, Jul 22, 2026)in force

What changed and who it applies to

What changed
The law bans producing hydrocarbons on the Argentine Continental Shelf without Argentine authorisation, and the reach of that ban is what makes it different from a declaration of sovereignty: article 2 covers three kinds of conduct and only the first is extraction. The second is «holding a direct or indirect stake» in whoever does it «or who provides services for such developments»; the third is «contracting and/or carrying out hydrocarbon activities, transactions, commercial acts, economic, financial, logistical or technical operations, consultancy and/or advisory activities, whether for consideration or free of charge» with whoever does it. ⇒ the supplier, the consultant and the logistics provider are already inside the ban, and have been since 2011. The penalty in article 3 is disqualification for 5 to 20 years, after an administrative process, plus the reversion of any concessions held to the State; article 4 registers it and immediately voids tax and social-security exemptions. Article 5 bars the national State, the provinces and the municipalities from contracting with them. And articles 7 to 9, as redrafted by Law 26,915, add 5 to 10 years in prison for exploring and 10 to 15 for extracting, transporting or storing, with fines measured in barrels of WTI crude, and for the company, suspension of activities and of participation in State tenders for up to 10 years. verif Apr 13, 2011 ↗
In force
13 April 2011, the date of publication in the Official Gazette. The criminal regime in force is the one set by Law 26,915, since 9 December 2013. verif Apr 13, 2011 ↗
Who it applies to
Three kinds of company. First: whoever explores or extracts on the Continental Shelf without Argentine authorisation. Second: whoever holds a stake in its capital, directly or indirectly, or in that of whoever provides services to it. Third and widest: whoever sells to it, provides a service, finances it, handles its logistics or advises it; article 2(3) names logistical, technical, consultancy and advisory operations, and adds «whether for consideration or free of charge», so getting paid is not even required verif. That the third is the one that matters to us, and that on the map we have loaded the exposed chain is marine and subsea services in the San Matías Gulf, is our own reading thesis. verif Apr 13, 2011 ↗
The norm
Law 26,659, passed on 16 March 2011, enacted on 12 April 2011 and published in the Official Gazette on 13 April 2011. Its enforcement authority, under the original text, is the Energy Secretariat. Law 26,915 (Official Gazette 09-Dec-2013) replaced articles 7, 8, 9 and 10, the criminal ones and the one on jurisdiction — jurisdiction sits with the Federal Courts. Its enforcement authority is NO LONGER the Secretaría de Energía: Decreto 868/2026 (Official Gazette 04-Sep-2026) appointed the Ministerio de Relaciones Exteriores, Comercio Internacional y Culto in its place, and gave the article 3 procedure the deadlines the law did not have. verif Apr 13, 2011 ↗

Our reading

This law changes what can be said about the government's announcement, and in the uncomfortable direction: the filter on the supplier is not created by the announced bill — it has existed since 2011 and has never been applied at this scale. What the announcement adds is not the ban but three smaller, more concrete things: speeding up the sanctioning procedure, raising the penalties, and extending the ban on contracting to the private sector — today article 5 only reaches the State. thesis For the Argentine marine-services supplier that means the advantage does not appear the day the new law is passed: it appears the day the enforcement authority starts opening files with the law it already has. That day now has a date: Decreto 868/2026 appointed an authority —the Foreign Ministry—, gave the proceedings deadlines and tied the sworn statement of compliance with this law to the RIGI process and to hydrocarbon permits. It applies from 5-Sep-2026 and has a record of its own here: Decreto 868/2026. It reads with R10 the other way round from how it was written: the rule does not remove a barrier, it raises one, and whoever ends up on the clean side of that barrier is whoever cannot have been over there. thesis

Analyze this rule for my company

Where it lands, province by province1

Río Negro It is the only one of the five provinces with a coastline and with marine services selling to offshore work, so it is the only one where this law decides who is allowed to invoice. The law bars contracting with, providing services to, or taking part -- directly or indirectly -- in anyone exploring or producing hydrocarbons on the Continental Shelf without Argentine authorisation. The effect on the Rio Negro supplier is not that a cost comes down: it is that competitors are removed. A vessel operator, a positioning service or a subsea inspection firm serving Falklands licensees is shut out of the Argentine market, and demand concentrates on whoever can be contracted. Note that the law dates from 2011 and was never applied at this scale in fifteen years: what changes the decision is the decree that names an enforcement authority and sets deadlines, not this law alone. favorable cheaper to respond: investing takes time, held-back supply shows up at once thesis

What it leads to1

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