MercoPress. South Atlantic News Agency

Falklands, larger oil reserves at Sea Lion development; independent resource report contracted by operator Navitas

The hydrocarbons will initially be produced through the redeployed FPSO with a peak production rate of some 55,000 bbls/d.

Rockhopper Exploration plc, the oil and gas company with key interests in the North Falkland Basin (“NFB”), has reported on the recent update published by Navitas Petroleum LP on Sea Lion development progress, which includes an updated NFB independent resource report conducted by Netherland Sewell & Associates (“NSAI”) (the “October 2024 NSAI Independent Report”) on behalf of Navitas.

The EIS for the Northern Development Area, Phase 1 & 2 development (the “Northern Development Area”) was submitted to the Falkland Islands Government (“FIG”) for statutory public consultation in July 2024 and in November FIG confirmed that, having received a number of comments, no further public consultation was required. An MOU has been signed for the provision of a redeployed FPSO with a current UK safety case. FEED for the FPSO commenced in November 2024.

The hydrocarbons will initially be produced through the redeployed FPSO with a peak production rate of some 55,000 bbls/d.

Against a background of continued industry cost inflation, gross capex required to first oil has increased to US$1.4bn (including contingency).  Despite this increase, project economics remain highly robust. Following these developments, Navitas indicates that FID is now scheduled for mid 2025 and first oil for Q4 2027.

The new NSAI report, which Rockhopper has not reviewed, categorizes the resources into 3 areas, Northern, Central and Southern Development Areas.

According to the October 2024 NSAI Independent Report, the certified gross 2C recoverable oil resources in the overall NFB have increased from 791 MMbbls to 917 MMbbls.  In addition, 2.1 TCF of 2C recoverable gas resources have been certified by NSAI.  This represents an increase in oil resources of 16% in the overall NFB portfolio compared to the previous certified 2C resource, as published in January 2024.