LONDON, UK -- Rockhopper Exploration (AIM: RKH) has issued an update on the Sea Lion development in the offshore North Falkland basin.
Phase 1, designed to recover293 MMbbl of oil over 25 years, will be based around a TLP. Overall projected cost is around $5.2 billion, comprising $3.5 billion for surface facilities and $1.7 billion for drilling.
Rockhopper anticipates capex to first oil of $3.8 billion, and average annual opex of $260 million, which includes rental of a floating storage unit and well interventions.
Operator Premier Oil, which is due to issue more details of the project tomorrow, expects to award the front-end engineering and design contracts this spring and to submit the draft field development plan at the end of this year.
Around that time, it also will award engineering procurement and construction contracts.
Rockhopper anticipates sanction for the development in 2Q 2015, with first oil following within 31/2 to four years.