Falkland Islands oil: Sea Lion gross 2C resources climb, permitting poised to start

Development-stage work continues on Falkland Islands hydrocarbons project Sea Lion, with owners Navitas Petroleum and Rockhopper Exploration still targeting a final investment decision this year.

First oil at the North Falkland Basin target is penciled in for end-2026. 

An updated development plan – optimized using floating production, storage and offloading vessel (FPSO) specifications – was submitted to the government of the British overseas territory, supplier talks and engineering work is underway and an updated environmental impact statement (EIS) was due to be filed this quarter.

The development plan – phases one and two – comprises 23 wells with a 16% increase in gross 2C resources to 312Mb (million barrels) from 269Mb. Gross capex to first oil is pegged at US$1.2bn and peak production, which could eventually be ramped up to 80,000b/d via a larger FPSO, is estimated at 55,000b/d. 

Potential exists, Rockhopper said in a regulatory filing, to produce up to 200,000b/d in the wider North Falklands Basin via up to three FPSOs.

According to an updated independent resource report from consultancy Netherland Sewell & Associates (NSAI), certified gross 2C resources in the basin are up 11% to 791Mb, from the 712Mb estimated in an earlier report.  

The government of the British overseas territory told BNamericas that provision of services would help diversify the economy, currently dominated by the fishing sector.

“Should the development proceed the model is for there to be no industrial onshore development,” it said. “Hydrocarbons would be shipped directly to market from the production facility. Of course there would be onshore provision of services to support the offshore activity.”

Falkland Islands drilling projects require the environmental green light to proceed.

“Following the submission of the EIS there will be a compliance review process followed by a statutory consultation process,” the government said. “Once all clarifications/responses from the public (and expert advisors) have been dealt with and appended to the EIS, the Government will consider whether or not to approve it.”

Rockhopper EIS documents were approved under previous legislation but are deemed obsolete under the current legislative regime. 

Rockhopper holds a 35% working interest in Sea Lion and associated North Falkland Basin licenses, following completion of a Navitas farm-in.

Several exploration campaigns have been carried out around the islands, but commercial production has not started.

The PLO32 license, which hosts the Sea Lion well, was granted to Rockhopper in May 2005. The acreage, and PLO33, were previously held and drilled by Shell.

The 2024 NSAI independent report can be downloaded via the link in the top right-hand corner of the page.