Rockhopper Exploration PLC on Monday said it has received approval to move forwards with the latest phase of its Sea Lion petroleum mining project.
The oil and gas exploration company, which has key interests in the Falklands Islands, noted an update from its operating partner, Nativas Petroleum LP, confirming that no further public consultation was required for the Sea Lion project’s initial phases to progress.
Development plans were submitted to the Falkland Islands government for statutory public consultation back in July. A memorandum of understanding has since been signed for floating production storage and offloading in the project’s northern development area. Rockhopper has said front-end engineering design for the site commenced in November.
An independent resource report carried out by Netherland Sewell & Associates on Navitas’s behalf estimated that 319 million barrels of oil will be recovered from 23 wells in the northern development site during phases one and two of the project.
Further expansion is planned for what Navitas calls the central development area, with the total number of barrels recoverable estimated at 532 million.
Rockhopper and Navitas hold additional oil and gas assets in an adjacent development zone, ‘for which there is currently no published development plan’.
Rockhopper said total capital expenditure across all planned phases was expected to be around $4.0 billion, highlighting ‘ a background of continued industry cost inflation’.
Production break-even is predicted to be approximately $24 per barrel. Rockhopper holds a 35% working interest in Sea Lion and associated licences.
Nativas said the final investment decision has been scheduled for mid 2025 and first oil drilling for the fourth-quarter of financial 2027.
The update follows Rockhopper’s announcement in October that the Falklands Islands government had extended its licence to operate in the region until 2026.
Rockhopper shares were down 0.7% at 13.90 pence each on Monday afternoon in London.
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