Rockhopper Exploration plc has welcomed a potential increase in production with the possible use of two floating production storage and offloading vessels at the Sea Lion discovery in the North Falkland Basin.
COSTS
Operator Navitas Petroleum already plans to use the Aoka Mizu FPSO for the first two phases, with a production capacity of 55,000 barrels of oil per day, of which 19.25k bopd is net to Rockhopper.
Aoka Mizu is due to set sail by the end of May to the shipyard to undergo adaptations for Sea Lion’s requirements.
Rockhopper said that Navitas had signed a memorandum of understanding for an additional FPSO to accelerate production by a further 125,000 bopd (43.75k bopd), but has yet to sign a binding agreement.
The operator has additionally changed the location for the upgrades of the Aoka Mizu FPSO from the Middle East to Asia, at a cost of US$45 million, due to the conflict in Iran.
The net increase to Rockhopper will be US$5.25m. The company said it remained funded for phase I.
Rockhopper’s loan from Navitas covers two thirds of its 35% equity requirement for phase I of Sea Lion.
Navitas is currently preparing the dock and shore base on the Falkland Islands ahead of constructing later this year workers’ accommodation and additional infrastructure works in readiness for the start of drilling activity.
The manufacturing of long lead items continues and drilling and completion works are scheduled to start at the beginning of 2027.
First oil from phase I remains on course for the first half of 2028.
Rockhopper chief executive officer Samuel Moody said: “We are delighted that the project is on track having taken the prudent decision in the light of the security situation arising from the Iran conflict to move the FPSO work from the Middle East to Asia.
“We are equally excited at the prospect that the development of additional barrels might be accelerated with the signing of the MOU for a second FPSO giving the opportunity to add a further 125,000 barrels per day of production to the 55,000 barrels per day from the first two phases.”