LONDON – Navitas Petroleum and Rockhopper Exploration have signed binding documents concerning their petroleum licenses in the offshore North Falkland basin.
This lays the basis for a new technical and financing plan for a lower-cost development of the Sea Lion area, which Navitas would operate.
Under the agreement, Navitas will acquire Premier Oil Exploration and Production from Harbour Energy (the latter opted to withdraw from E&P in the Falklands following its takeover of Premier Oil).
Subject to all necessary consents from the Falkland Islands’ government, the two remaining partners and Navitas will seek to align working interests across all their North Falkland basin licenses, giving Navitas 65% and Rockhopper 35%.
Navitas will fund the majority of Rockhopper's share of costs for Sea Lion phase, via a loan, up to Final Investment Decision (FID). If there has not been material progress towards FID within five years of completion of the transaction, Rockhopper can elect to remove Navitas from the petroleum licenses by repaying the pre-FID loan.
The partners will also leave the door open to bring onboard another company, depending on future funding requirements. Rockhopper retains 100% of its licenses in the offshore South Falkland basin.