Sea Lion Development Progressing
Wednesday 14 June 2017
Premier Oil’s Sea Lion development off the Falkland Islands is on track to be sanctioned next year according to partner Rockhopper Exploration.
Rockhopper said Wednesday front-end engineering and design work had progressed and de-risked the development, with the focus for the remainder of the year being on the commercial, fiscal and financing elements of the project.
It added a number of contractors had expressed interest in potentially providing funding for the project and it was hopeful of an agreement, in principle, on key terms being reached over the coming months.
Rockhopper said it believed the joint venture would be in a position to sanction the project at some point in 2018. Operator Premier has previously said it sees a final investment decision being made mid next year.
Rockhopper said late last year it estimated the capital expenditure for the Sea Lion development at $1.5 billion.
The development plan involves a floating production, storage and offloading vesselwith the first phase development expected to recover 220 million barrels of reserves in the north-east and north-west of the field in PL032.
A proposed second phase development will develop the remaining 300 million barrels of oil in PL032 and the satellite accumulations in the north of PL004.
A third phase development could see the development of the Isobel/Elaine fan complex in the south of PL004, subject to further appraisal drilling.