Finance under review for Sea Lion project offshore the Falklands
Rockhopper Energy says front-end engineering and design is progressing for Phase 1 of the Sea Lion oil field development in the offshore North Falkland basin.
This year, the focus has been on the commercial, fiscal, and financing elements of the project.
Various contractors have expressed interest in providing funding for the project and the company hopes to reach agreement in principle on key terms soon with the operatorPremier Oil, with a view to sanctioning the project during 2018.
Discussions also continue with potential providers of export credit finance.
Elsewhere, Rockhopper expects an arbitral tribunal to be established this summer to handle its proceedings against the Republic of Italy. This followed the Italian government’s decision not to renew Rockhopper’s license (and proposed development) for theOmbrina Mare oil field in the Adriatic Sea.
Rockhopper is claiming the decision breaches the Energy Charter Treaty, and plans to seek damages on the basis of lost profits.