MercoPress. South Atlantic News Agency

North Sea FPSO extension clears path for potential redeployment to Falklands

The Aoka Mizu FPSO has been a key asset in the UK North Sea and is the preferred production unit for the long-stalled Sea Lion oil development off the Falklands

Dutch offshore company Bluewater has reached an agreement in principle to extend the deployment of the Aoka Mizu FPSO on the UK’s Lancaster oilfield, a move that could set the stage for the vessel’s future redeployment to the Falkland Islands' Sea Lion project.

According to a quarterly report from Bluewater’s parent company Aurelia, the terms of the contract extension with the FPSO’s current operator, Prax Group, aim to “extend oil production as long as reasonably possible and convenient to both parties to ensure a smooth transition from current client and subsequent new contract party.”

The Aoka Mizu FPSO has been a key asset in the UK North Sea and is the preferred production unit for the long-stalled Sea Lion oil development off the Falklands, should it proceed. While no definitive timeline has been given for the vessel’s next assignment, Bluewater has previously suggested that refitting could begin as early as mid-2025 to prepare the vessel for a new deployment by mid-2027, according to Upstream.

The current lease arrangement includes a flexible termination clause allowing either Bluewater or Prax to exit the contract with 180 days’ notice. Despite the uncertainty, the renewed agreement signals continued activity in a mature oil basin while leaving the door open for future South Atlantic operations.

The Sea Lion project, led by Navitas Petroleum, remains contingent on financing and geopolitical stability in the region. If it proceeds, the Aoka Mizu would play a central role in enabling production from the remote basin.