LONDON – Premier Oil has decided to suspend Phase 1 of the Sea Lion oil project in the offshore North Falkland basin to minimize ongoing expenditure, due to current market conditions.
The company said the project is complete from a technical aspect and all work performed to date has been fully documented, so the project can be reactivated once the global outlook improves.
A reduced team will continue to pursue government, commercial and financing negotiations, including the proposed farm-in by Navitas to a 30% interest in the Sea Lion licenses.
Talks also continue on another farm-down agreement with Zarubezhneft for a 50% stake in the Premier-operated Tuna discoveries offshore Indonesia. Under the proposal, the Russian company would carry Premier for its share of a two-well appraisal campaign expected to take place in 2021.
In block 7 offshore Mexico, the sales process for Premier’s 25% interest has been impacted by COVID-19.
FEED continues on the selected development concept for the Zama oil field ahead of submission of the field development plan to Mexico’s government.