Sea Lion roars into Falklands expansion as Navitas reels in second FPSO

Aug. 25 (offshore-energy.biz) Navitas Petroleum, an Israeli oil and gas producer and developer that operates a project under development in the North Falkland Basin, is stepping up plans to expand its oil field project in the Falkland Islands through the acquisition of a second floating production, storage, and offloading (FPSO) vessel that could boost daily oil output capacity by thousands of barrels.

After investigating the possibility of accelerating the development of subsequent phases of the Sea Lion development beyond phase 1 of the northern development area (NDA Phase 1), Navitas signed, through a subsidiary, a memorandum of understanding (MOU) for an additional FPSO.

The company has now exercised an option to acquire the second FPSO, named OSX-1, with the completion of the acquisition expected during the coming month. The aggregate cost of acquiring the FPSO OSX-1, excluding the anticipated upgrade costs, is approximately $125 million.

Navitas will initially be the sole owner through an incorporated special purpose vehicle and will bear 100% of the related costs until its partner, Rockhopper, funds its share. The two partners are currently discussing how the FPSO OSX-1 will be formally incorporated into their existing Sea Lion joint venture agreements.

Navitas estimates this second FPSO could increase Sea Lion production capacity by a further 125,000 barrels of oil per day (bopd) and accelerate subsequent production phases when compared to current plans. The first two development phases are going to use the FPSO Aoka Mizu, which will have a production capacity of 55,000 bopd.

Read full article: https://www.offshore-energy.biz/sea-lion-roars-into-falklands-expansion-as-navitas-reels-in-second-fpso/