(OM) Rockhopper Exploration has commented on a progress report on the Sea Lion oil development in the offshore North Falkland basin from operator Navitas Petroleum LP. This includes an updated development plan, which takes into account static and dynamic reservoir models.
Netherland Sewell & Associates’ latest independent report has increased gross 2C resources in the partners’ licenses in the basin from 712 MMbbl to 791 MMbbl.
Navitas, meanwhile, has identified potential FPSOs that are available for a development and is working with groups in the industry vendors to secure all long-lead equipment.
It is targeting FID for Sea Lion Phase 1 later this year and first oil at the end of 2026.
The optimized development plan comprises 23 wells to be drilled in two phases. Gross capex to first oil has been cut to $1.2 billion with a project capex of $8/bbl and opex across the field’s life of under $17/bbl.
The new breakeven is under $25/bbl, down from $27/bbl previously.
Production through the redeployed FPSO should provide an extended plateau of up to 55,000 bbl/d for about eight years via a “drill to fill” process. The prolonged plateau is said to increase total recovery and lower the cost per barrel.
FEED continues to assess potential for a further accelerated production ramp-up and increased capacity.
The selected FPSO will have a disconnectable turret and could therefore be redeployed later to another field elsewhere in the basin, allowing a second, larger vessel to replace it on Sea Lion that would provide a higher production capacity of more than 80,000 bbl/d.
Potentially, the discovered resource in the basin could justify up to 3 FPSOs with a combined capacity of about 200,000 bbl/d.
Navitas has submitted its updated field development plan to the Falkland Islands government and should submit the updated environmental impact assessment later in the current quarter.
Rockhopper has a 35% interest in Sea Lion and associated licenses in the basin.
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