Rockhopper Exploration said the Sea Lion oil development in the North Falkland Basin remains on track for first oil in the first half of 2028, while operator Navitas Petroleum studies accelerating later phases of the project through the addition of a second floating production vessel.
The London-listed company said Navitas had signed a memorandum of understanding for an additional floating production storage and offloading vessel (FPSO) that could increase Sea Lion’s production capacity by a further 125,000 barrels of oil per day, on top of the 55,000 barrels per day planned under the first two phases of development.
Rockhopper said the current development plan uses the FPSO Aoka Mizu, which is expected to provide net production of 19,250 barrels per day attributable to the company. It added that there was no guarantee the memorandum for the second vessel would lead to binding agreements.
Navitas also decided to relocate upgrade works for the Aoka Mizu from the Middle East to Asia due to the conflict in Iran, increasing the development budget by about $45mn. Rockhopper said its net additional equity cost would be $5.25mn because of a financing arrangement under which Navitas is covering two-thirds of Rockhopper’s 35% equity requirement for Phase 1.
The companies said development work has already started in the Falkland Islands (also known as Malvinas), focusing on dock and shore-base preparation. Additional infrastructure and worker accommodation construction are expected to begin later this year ahead of drilling operations.
According to the update, manufacturing of long-lead equipment for Phase 1 is under way. The owner of the Aoka Mizu informed the partners earlier this month that production activities with its current operator had concluded and that the vessel would depart for shipyard upgrades after disconnection works are completed by the end of May.
Drilling and completion operations are scheduled to begin in early 2027, with Phase 1 production still targeted for the first half of 2028.
Chief Executive Officer Samuel Moody said the company was pleased the project remained on schedule after the “prudent decision” to relocate upgrade work from the Middle East to Asia because of the regional security situation.
Moody also welcomed the possibility of accelerating future development phases through the second FPSO agreement, saying it could add another 125,000 barrels per day to the 55,000 barrels per day planned from the initial phases.
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