Rockhopper Exploration plc and its partner have taken the final investment decision on phase I development of the Sea Lion field, offshore north of the Falkland Islands.
CONTRACTS
The company and operator Navitas Petroleum Development and Production Ltd have also agreed and signed financing arrangements, which are expected to finalise over the coming weeks.
Once completed, the July placing for US$140 million is expected to proceed alongside the start of an open offer.
Field development and production previously received approval for phases I and II of the northern development area within the field.
Rockhopper said that Sea Lion’s licences now moved into a 35-year, or longer if necessary, exploitation phase.
On completion of technical and commercial work to support project financing, total post-FID funding will be $1.8 billion to first oil and $2.1 bn to project completion.
Sea Lion phase I targets 170 million barrels of oil, of which 59.5 mmbbls is net to Rockhopper, at a peak production of approximately 50,000 barrels per day, with first oil planned for 2028.
Phase II is expected to recover a further gross 2C resource of 149 mmbbls, with 52.15 mmbbls net to Rockhopper.
Navitas has agreed an FPSO charter and associated engineering, procurement and construction and operations and maintenance contracts; a drilling rig; a framework for drilling and completion services; and for the EPC, installation and commissioning of subsea umbilicals, risers, and flowlines (SURF).
Rockhopper holds a 35% interest in Sea Lion with Navitas owning the balance.
Chief executive officer Sam Moody added: “The sanctioning of Sea Lion is a major milestone for Rockhopper and all its stakeholders and represents the culmination of over 20 years of work.
“When we first discovered Sea Lion in 2010, it was a hugely exciting play-opening well, and the vast amount of work undertaken since then, first in the ensuing drilling campaigns and then the many years of engineering and commercial refinement, is now moving towards its ultimate fruition as we move into the development phase.”