MercoPress. South Atlantic News Agency

Falklands’ oil development, Navitas has contracted a floating production vessel, UK media

Once deployed, the Aoka Mizu is expected to drill up to 23 wells in the first stages of the development.

The UK media is reporting that Navitas, the lead operator of the Falkland Islands Sea Lion field, has told investors it has signed contracts to move the Aoka Mizu floating production vessel from Shetland to the South Atlantic and plans a formal “final investment decision” this month.

 In a note to investors, the company said it had now won approval “in principle” from the Falkland Islands government and was working to get final approval for its plans. Once deployed, the Aoka Mizu will drill up to 23 wells in the first stages of the development.

The Falkland government said it was keen for drilling to get under way. A spokesman said extracting the oil was “a political and community priority for the Falkland Islands”.

They added: “If a hydrocarbons industry is successfully established, it will provide transformative opportunities for the people of the Falkland Islands, leading to financial and political security.”

Estimates suggest the extractable oil in Falkland waters is worth at least US$1.3bn. The exact share of revenues between private developers and the local government is not yet clear.

A spokesman for the UK Foreign Office said: “We have been clear that any decision on this issue is a matter for the Falkland Islands government and the private companies concerned.”

The Aoka Mizu’s departure from the North Sea is part of a wider trend that has seen other drilling rigs and production vessels leave the UK for Norwegian waters, or head to regions like the Middle East as Britain winds down its offshore oil and gas industry. The vessel in question has worked in the British North Sea for almost two decades.

Hugo Heerema, chief executive of Bluewater, the Dutch offshore operator that owns the Aoka Mizu, said the ship had been producing oil in the UK’s North Sea since 2009. It worked first on the Ettrick field off Aberdeen and then on the Lancaster Field off Shetland.

Mr Heerema said: “The vessel is slated for Navitas’ Sea Lion development[...] Depending on Navitas go-ahead, it may leave the Lancaster site in mid-2026.”