GCA issues Falkland project cost estimate

Gaffney Cline Associates (GCA) has delivered a Competent Persons Report (CPR) to Rockhopper on the Sea Lion complex discoveries in the offshore North Falkland basin.

Offshore staff

LONDON – Gaffney Cline Associates (GCA) has delivered a Competent Persons Report (CPR) to Rockhopper on the Sea Lion complex discoveries in the offshore North Falkland basin.

This includes a scenario for a development based on a newbuild FPSO, which assumes first oil being achieved early in 2016, and a plateau production rate for the first three years of 70,000 b/d of oil.

The CPR estimates life-of-field development costs at $4.8 billion, including:

  • Drilling - $2.4 billion for 34 wells
  • FPSO - $294 million
  • Topside facilities - $522 million
  • Subsea facilities - $320 million
  • Flowlines - $481 million
  • Mobilization - $100 million
  • Project management, insurance, owners’ costs - $246 million
  • Contingency costs - $493 million

GCA has not provided an estimate of the capital cost to deliver first oil production, but Rockhopper’s internal calculation is roughly $2 billion, based on a development incorporating a leased FPSO, and a phased drilling program.

4/20/2012

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