Oct. 8 (OE) Rockhopper Exploration has agreed to invest $44 million to acquire a 35% interest in the OSX-1 floating production, storage and offloading (FPSO) vessel, which is planned for the accelerated development of the Sea Lion oil field in the North Falkland Basin.
The company has entered into a subscription agreement to acquire ordinary shares in a newly incorporated special purpose vehicle (SPV) that owns the FPSO, with the investment to be funded from its existing cash resources.
The $44 million commitment represents Rockhopper’s 35% share of the vessel’s estimated $125 million acquisition cost.
The SPV’s sole asset is the OSX-1, and Rockhopper expects to incur annual net holding costs of approximately $1.4 million attributable to its interest.
Sea Lion operator Navitas Petroleum previously exercised an option to acquire the OSX-1 as part of plans to accelerate development of the field’s Central Development Area (CDA), beyond the initial development of the Northern Development Area (NDA).
The additional FPSO could increase Sea Lion’s production capacity by approximately 125,000 barrels of oil per day, including 43,750 barrels per day attributable to Rockhopper’s interest, according to estimates provided by Navitas in August.
The proposed CDA development comprises 38 wells across two phases, including 20 wells in the first phase and 18 in the second.
Navitas plans to submit the CDA development plan to the Falkland Islands Government and reach a final investment decision in the first half of 2028, targeting first production from CDA Phase 1 by the end of 2030.
The initial Sea Lion development, NDA Phase 1, remains scheduled for first oil in the first quarter of 2028.
Preparations for that phase include shore base and quay infrastructure, accommodation facilities and the manufacture of subsea equipment, including flexible flowlines, wellheads and subsea Christmas trees.
Drilling for the initial development is scheduled to begin in early 2027, with the Aoka Mizu FPSO designated for NDA Phase 1.
Rockhopper holds a 35% interest in Sea Lion, while Navitas operates the development with the remaining 65%.
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