LONDON – Premier Oil and partner Rockhopper have agreed to switch to a phased, lower-cost development solution for the Sea Lion field in the offshore North Falkland basin.
Initially they plan to develop around 160 MMbbl of oil over 15 years using a leasedFPSO, with plateau production of 50-60,000 b/d from 10-15 wells. They estimate costs for the initial phase at less than $2 billion.
They are targeting first oil in 2019, assuming sanction for the project in 1H 2016.
The lower-cost scheme is designed to access more than 50% of the resources within the PL032 license, focusing on the field’s northeast segment. Subsequent development phases, which will require separate project sanction, will address remaining discovered resources in PL032 and PL004, and any new reserves discovered during next year’s exploration campaign.
Thetime-share rig that will drill Premier’s four planned exploration wells in the North Falkland basin is expected to arrive on location in February and should spud the Zebedee well in March, followed by the Isobel Deep well in the south of PL004a.