Negotiations continue with service providers for the Premier Oil-operated Sea Lion development in the offshore North Falkland basin. According to partner Rockhopper Exploration, Phase 1 will develop around 220 MMbbl in license PL032 and a further 300 MMbbl from the license’s remaining resources under Phase 2.
The Financial Times is reporting that Premier Oil is negotiating with the UK government about securing export finance to fund just over half of the US$1.5bn investment needed to develop a large oilfield in waters north of the Falkland Islands. If all works out as planned first oil in the Falklands would be in 2021.
Rockhopper Exploration plc has provided its latest operational and corporate update which includes the North Falkland Basin Sea Lion project and has announced that the technical engineering is approaching conclusion and a settlement on the Eirik Raude rig dispute has been reached.
Despite current low oil prices, the oil and gas industry in the Falkland Islands is continuing to go from strength to strength as its first project, Premier Oil’s Sea Lion, moves closer to commercialization, according to an analyst with research and consulting firm GlobalData.
The semi-submersible oil rig oil rig Eirik Raude entered Falkland Islands waters to the north this week and has already been served by supply vessels and undergone a crew change operation. The Eirik Raude will shortly begin a six-well drilling campaign operated by Premier Oil and Noble Energy.
With the Falkland Islands' upstream oil and gas industry still in its infancy, the country's attractive fiscal regime, which boasts a low government take, is expected to remain stable through the short and medium term, says a new report from research and consulting firm GlobalData.
Falkland Oil & Gas is to buy a smaller Falklands-based firm to create a “combination” company with licences to search for oil both to the north and south of the Falkland Islands in the South Atlantic. FOGL said on Thursday it had agreed to buy Desire Petroleum offering 0.6 FOGL “consideration” shares for each Desire share, in a deal valuing Desire at 61 million pounds (99 million dollars).
Premier Oil, the British North Sea's oldest company outside the oil majors, is turning away from the region for future exploration opportunities such as the Catcher and the Sea Lion project in the Falkland Islands, according to a report published by Reuters.
Falkland Islands Holdings, which owns the Falkland Islands Company, FIC, expects to report a slight fall in annual profits but anticipates a quantum leap in the Falklands’ economy over the next decade with the oil industry and the commencement in 2014 of the Sea Lion project.
Argos Resources the only Falklands explorer to not drill a well has had the most successful year of them all in share price terms. Results of interpretation of 3D seismic data are encouraging with a number of prospects identified and the company is looking for industry partners to take exploration drilling forward. Year to date share price performance: up 107.92% at 24.95p.