LONDON – Negotiations continue with service providers for the Premier Oil-operated Sea Lion development in the offshore North Falkland basin.
According to partnerRockhopper, Phase 1 will develop around 220 MMbbl in license PL032 and a further 300 MMbbl from the license’s remaining resources under Phase 2.
In addition, there is 200 MMbbl of near-field exploration potential that could be included in either development. Phase 3 will focus on the Isobel/Elaine fan complex in the south of PL004, subject to further appraisal drilling.
The partners are working on a conventional FPSO development scenario with around 23 subsea wells, at an overall estimated cost to first oil of $1.5 billion.
To date they have signed letters of intent for provision of the FPSO, thedrilling rig, well services, subsea production systems, and helicopter services. These will be converted into letters of award as the sanction process progresses.
The field development plan is now substantially agreed, Rockhopper added, and discussions continue with the Falkland Islands government on obtaining the necessary consents and agreements to attain a final investment decision.
Elsewhere, the company is a partner to Eni in theGuendalina gas field offshore eastern Italy, where production is declining. Efforts continue to reduce operating costs through optimization of water disposal.
As for Rockhopper’s international arbitration proceedings against the Republic of Italy in relation to the Ombrina Mare field, a hearing has been scheduled for early February 2019.