SLB, Halliburton and Baker Hughes, three of the world’s largest oilfield service companies, have publicly stepped back from hydrocarbon work near the Malvinas (Falkland Islands), where Argentina is sanctioning firms, as Vaca Muerta offers far more.

SLB said in a statement that it is “not participating, nor does it plan to participate, in any bidding processes” tied to Malvinas (Falkland Islands) hydrocarbon projects, adding that it “reaffirms its commitment to compliance.” Halliburton and Baker Hughes issued similar statements emphasizing their regulatory compliance in Argentina, where both maintain substantial operations.

The economics are lopsided. Vaca Muerta is an established, low-risk shale play with a production horizon analysts put at a century, and output is projected to reach roughly 1 million barrels a day by 2028 and more than 1.5 million by 2032. The proposed Sea Lion project in the Malvinas (Falkland Islands), led by Navitas Petroleum and Rockhopper Exploration, remains speculative by comparison, with estimated output ranging from 50,000 to 200,000 barrels a day.

President Milei’s government has sanctioned dozens of companies and individuals it says are operating without Argentine authorization near the islands, expanding the list from 45 to 60 entities in recent weeks, and has filed criminal complaints naming executives personally rather than only the companies they work for.

Argentina has also been courting the same service companies into Vaca Muerta through its own incentive schemes, including RIGI, the large-investment regime that offers extended fiscal, customs and currency benefits to major energy projects. For firms like SLB, Halliburton and Baker Hughes, a heavily incentivized, low-risk market at home sits beside a sanctioned, legally exposed one off the Malvinas (Falkland Islands). That makes the decision a business one.

None of the three companies has framed its decision as a direct response to Argentine pressure.

Analyst Daniel Dreizzen said the moves give Argentina new leverage to use its hydrocarbon sector as diplomatic pressure in a territorial dispute that has been largely stalled for decades, adding that the country now has real clout in ways it lacked in past rounds of the conflict.