Positive news for Falklands' oil industry development. All regulatory consents for the transaction between Harbour Energy plc and Israel's Navitas Petroleum LP of its Falkland Islands offshore license interests have been approved by the Falkland Islands government and the United Kingdom minister of state.
The announcement was released on Tuesday by Rockhopper Exploration plc (AIM: RKH) which has key interests in the North Falkland Basin, including the Sea Lion prospect.
As part of the transaction, the Falklands Government has agreed to grant a two-year license extension to all the licenses held by Rockhopper in the North Falkland Basin. Accordingly, the licenses will now run until 1 November 2024.
Last 19 April, Rockhopper, Harbour Energy and Navitas Petroleum signed a legally binding definitive documentation in relation to Harbour exiting and Navitas entering the North Falkland Basin. Under the terms agreed Navitas would acquire Premier Oil Exploration and Production Limited, the company in which Harbour holds all of its Falkland Islands licenses.
Following on this Rockhopper and Navitas will seek to align working interests across all their North Falkland Basin petroleum licenses – Rockhopper 35% / Navitas 65%, subject to all necessary consents.
Likewise under the new farming in, Rockhopper and Navitas are to jointly develop and agree a technical and financing plan to enable the development of the Sea Lion project to achieve first oil on a lower cost and expedited basis post sanction. Navitas is to provide loan funding to Rockhopper
In May Rockhopper and Navitas said they were considering use of a redeployed FPSO for their Sea Lion field development in the offshore North Falkland Basin.