A hydrocarbon development project in the Falkland Islands faces new challenges following the announcement of one of the companies involved that it shall be lifting all South Atlantic operations.
Premier Oil announced on Tuesday that shareholders voted in favor of a reverse takeover of private equity-backed Chrysaor to create the British North Sea’s biggest oil and gas producer in which Premier shareholders will hold about 5.5%.
The Falkland Islands Government has taken notice of the recent press release concerning the proposed merger of Premier Oil plc and Chrysaor Holdings Ltd.
Shares in Premier Oil, with interests in the Falkland Islands, soared more than 14% on Tuesday, after the oil explorer agreed with a reverse takeover that will create the largest London-listed independent oil-and-gas group, producing more than 250,000 barrels of oil a day.
The UK's oil industry is in “crisis” as prices drop, a senior industry leader has told the BBC. Oil companies and service providers are cutting staff and investment to save money.
UK-based oil and gas operator Premier Oil has said it has suspended the Sea Lion-1 oil project offshore the Falkland Islands. The company said the US$1.8 billion offshore oil project would be suspended to minimize ongoing spend in light of the current market conditions.
Rockhopper Exploration, a partner in Premier Oil-operated Sea Lion offshore oil project in the Falkland Islands, is confident it will manage to farm-out a share in the project despite the low oil prices and COVID-10 uncertainty. The two companies in January signed non-binding heads of terms with US/Israel Navitas Petroleum, which should lead to Navitas obtaining a 30% interest in the Sea Lion offshore blocks.
The recent announcements by Rockhopper PLC and Premier Oil referred to the development of the Sea Lion project in the Falkland Islands, have triggered a reaction from the Argentine foreign ministry.
Premier Oil is selling its stake in a “world-class” project off the coast of Mexico and wants to reduce its holding in a long-awaited scheme north of the Falkland Islands as it tries to lighten its US$ 2bn debt burden, reports the Financial Times.
UK-based oil and gas firm Premier Oil with interests in the Falkland Islands has announced its full-year results for 2018, reporting a post-tax profit hike to US$ 133.4m as a result of record production. These full-year results are a ‘return to profitability’ from 2017’s full-year loss of US$ 253.8m.