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Montevideo, December 11th 2016 - 13:47 UTC

Falkland Islands’ Sea Lion project will demand 5bn dollars and first oil is expected 2017

Friday, April 19th 2013 - 06:24 UTC
Full article 93 comments
Premier said that the company wants to maximise opportunities for local businesses and for local skills Premier said that the company wants to maximise opportunities for local businesses and for local skills

UK independent oil and gas Premier Oil company said that the Falkland Islands Sea Lion project is one of their biggest operations undertaken to date involving an investment of 5 billion dollars with first oil expected sometime in 2017.

An update on the Sea Lion project, a farm-out of Rockhopper Exploration was provided by Premier Oil at a public presentation this week in Stanley.

“The Falkland Islands are a key part of our ambitions for the future with the Sea Lion project, the biggest undertaken to date” said Ken Humphrey of Premier Oil at the very well attended event.

It is currently estimated that the Sea Lion field has recoverable oil resources of between 300 and 350 million barrels.

The development drilling phase will take several years with up to two rigs working on location. The construction phase of the Sea Lion field will take four years with first oil expected in 2017.

Preliminary site work has taken place regarding the possible construction of a temporary bundle building facility. However Mr Humphrey stressed that a decision has not been made and that different options were being considered.

It is also anticipated that the project will require a total lay-down area of around 220,000 square metres with Mr Humphrey saying that discussions are underway on this issue.

Mr Humphrey said that “2013 will see work continue on technical studies and engineering and logistical support and infrastructure options”.

It is expected that in 2014 a field development plan will be presented. With first oil expected in 2017, Mr Humphrey said that “the development of the Sea Lion field by Premier Oil would be a 5 billion dollars project with thousands of people around the world involved”.

Mr Humphrey also underlined Premier Oil’s commitment to the Falklands wishing “to maximise the opportunities for local businesses, maximise the opportunities for local skills development and minimise any negative impacts on the existing rural, fisheries and tourism industries”.

Last October the Falkland Islands government approved changes to Rockhopper’s production licence interests to permit the assignment of 60% of Rockhopper’s licenses to Premier Oil and the approval of Premier Oil to become the operator of the licenses.

Premier said it would partner Rockhopper paying an initial 231 million dollars in cash as well as providing around 770 million to help build infrastructure for the development of the Sea Lion field 2010 oil discovery in the north Falkland basin.

The independent oil and gas company also has interests and operations in Indonesia, Norway, Pakistan, Mauritania, UK and Vietnam,

 

Financial Tags: RKH.

Top Comments

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  • Think

    TWIMC

    5bn dollars to develop Sea Lion’s end of the world project with its meager 300 Million Oil Bubbles???

    Anybody read The Telegraph this morning?....:
    A “carbon bubble” is being formed because of an overvaluation of oil, coal and gas reserves held by companies across the world.
    Energy firms will be forced to leave two-thirds of these reserves underground if the world is to meet internationally-agreed climate change targets. As a result, these fossil fuels will be unburnable and therefore worthless - causing huge market losses.
    The research has been conducted by Lord Stern, a professor at the London School of Economics, and think tank Carbon Tracker, which is supported by HSBC, Standard & Poor’s and the International Energy Agency.
    http://www.telegraph.co.uk/finance/newsbysector/energy/10004987/Carbon-bubble-could-fuel-another-global-economic-crisis-report-warns.html

    Anybody read The Guardian this morning?....:
    Jens Peers, who manages Mirova, part of €300bn asset managers Natixis, said: “It is shocking to see the report's numbers, as they are worse than people realise. The risk is massive, but a lot of asset managers think they have a lot of time. I think they are wrong.” He said a key moment will come in 2015, the date when the world's governments have pledged to strike a global deal to limit carbon emissions.

    “The Oil Investors only believe environmental regulation when they see it,” said James Leaton, from Carbon Tracker “Analysts say you should ride the train until just before it goes off the cliff. Each thinks they are smart enough to get off in time, but not everyone can get out of the door at the same time. That is why you get bubbles and crashes.”
    http://www.telegraph.co.uk/finance/newsbysector/energy/10004987/Carbon-bubble-could-fuel-another-global-economic-crisis-report-warns.html

    Apr 19th, 2013 - 09:12 am 0
  • Britworker

    @1
    Why do you care?

    Apr 19th, 2013 - 09:31 am 0
  • Islander1

    Think- on those grounds, first to be killed off would be the Vaca Muerta potential then.

    Apr 19th, 2013 - 09:41 am 0
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