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Montevideo, October 16th 2018 - 18:49 UTC

Falklands Sea Lion development on track to begin offshore operations

Thursday, September 20th 2018 - 06:52 UTC
Full article 3 comments
Rockhopper chairman David McManus said that with oil prices above US$75 per barrel “we are focusing efforts to allow project sanction to take place next year” Rockhopper chairman David McManus said that with oil prices above US$75 per barrel “we are focusing efforts to allow project sanction to take place next year”
 Premier and Rockhopper are working on a conventional FPSO development scenario with 23 subsea wells, at an estimated cost to first oil of US$ 1.5 billion. Premier and Rockhopper are working on a conventional FPSO development scenario with 23 subsea wells, at an estimated cost to first oil of US$ 1.5 billion.
To date they have signed letters of intent for provision of the FPSO, the drilling rig, well services, subsea production systems, and helicopter services To date they have signed letters of intent for provision of the FPSO, the drilling rig, well services, subsea production systems, and helicopter services

Negotiations continue with service providers for the Premier Oil-operated Sea Lion development in the offshore North Falkland basin. According to partner Rockhopper Exploration, Phase 1 will develop around 220 MMbbl in license PL032 and a further 300 MMbbl from the license’s remaining resources under Phase 2.

 In addition, there is 200 MMbbl of near-field exploration potential that could be included in either development. Phase 3 will focus on the Isobel/Elaine fan complex in the south of PL004, subject to further appraisal drilling.

The partners are working on a conventional FPSO development scenario with around 23 subsea wells, at an overall estimated cost to first oil of US$ 1.5 billion.

To date they have signed letters of intent for provision of the FPSO, the drilling rig, well services, subsea production systems, and helicopter services. These will be converted into letters of award as the sanction process progresses.

The field development plan is now substantially agreed, Rockhopper added, and discussions continue with the Falkland Islands government on obtaining the necessary consents and agreements to attain a final investment decision.

'We continue to work closely with the operator to progress Sea Lion and, while much work still needs to be done to finalize the funding of the development,' chairman David McManus said.

'With oil prices currently above US$75 per barrel we are focusing all of our efforts on doing everything possible to allow project sanction to take place next year.'

'Notwithstanding the increased activity and spend on Sea Lion, the company continues its ongoing focus on cost control and has maintained a strong balance sheet with cash resources at mid 2018 of US$ 46m and no debt.'

Elsewhere, the company is a partner to Eni in the Guendalina gas field offshore eastern Italy, where production is declining. Efforts continue to reduce operating costs through optimization of water disposal.

Top Comments

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  • golfcronie

    Good on you Premier and Rockhopper. About time methinks.

    Sep 20th, 2018 - 07:52 am +1
  • Brit Bob

    Regarding Falklands oil exploration, Argentine Foreign Minister Jorge Taiana stated in February 2010, that his Government would take 'all measures necessary to preserve our rights' and also reiterated that Argentina had a 'permanent claim' on the islands, saying 'Buenos Aires would complain to the UN over the oil project and might take the case to the International Courts of Justice in the Hague.' (British Drilling for Falklands Oil Threatens Argentine Relations, Pope F. 13 Feb 2010 & Potential Drilling off Falklands Provokes Tensions Between UK & Argentina IRRU News 17 Feb 2010)
    Why's it taking so long Jorge?

    Falklands – Territorial Waters: https://www.academia.edu/10574593/Falklands_Islands_Territorial_Waters

    Sep 20th, 2018 - 09:34 am +1
  • GALlamosa

    Think he got fired Bob. And wonder what the old geezer from Patagonia is doing with all his spare nails.

    Sep 20th, 2018 - 04:52 pm +1
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