Development plan firming for Sea Lion offshore the Falklands

Rockhopper Exploration says planning continues for a three-phased development of the Sea Lion oil field in the offshore North Falkland basin.

Phase 1 is designed to produce around 220 MMbbl from licence PL032.

Phase 2 will encompass a further 300 MMbbl from the remaining resources in this licence and satellite accumulations in the north of PL004.

In addition, a further 200 MMbbl of low risk, near field exploration potential could be included in either scheme.

Phase 3 will focus on the Isobel/Elaine fan complex in the south of PL004, subject to further appraisal drilling.

Operator Premier Oil plans a conventional FPSO development with around 23 subsea wells and gross capex to first oil of US$1.5 billion.

Letters of intent have been signed for the FPSO, drilling rig, well services, subsea production systems and helicopter services, and these will be converted to fully termed, executed contracts.

Front-end engineering design concluded last month. The field development plan is substantially agreed on, and this will likely be submitted in the run-up to sanction.

Premier and Rockhopper continue to engage with the Falkland Islands government on securing consents and agreements in order to reach a final investment decision.

The Sea Lion Discovery Area is due to expire on the 15^th April 2020, but the development plan should be submitted before that date, Rockhopper said, so an application for a further licence extension should not be needed.

Source: Offshore Magazine