LONDON – Technical engineering is nearing completion for the front-end engineering and design phase of the Sea Lion project in the North Falkland basin.
According to partner Rockhopper Exploration plc, the focus this year will shift to commercial, fiscal, and financing issues, with continued engagement with the Falkland Islands government on operational and regulatory matters.
The company adds that the operators of last year’s wells around the Falkland Islands have reached a settlement withOcean Rig over the early termination of the contract for the semisubmersibleEirik Raude.
This year Rockhopper anticipates spending around $13 million, including $8 million for pre-development activities and $2 million for abandonment costs.
The latter relates primarily to decommissioning and removal of theOmbrina Mare tripod in the Adriatic Sea off eastern Italy, the cost of which Rockhopper will seek to recover through an international arbitration process.