Rockhopper confirms Sea Lion project on track for first oil

20th May 2026 11:06

(Sharecast News) - Rockhopper Exploration said on Wednesday the Sea Lion project remained on track for first oil in the first half of 2028, after operator Navitas Petroleum updated the market on development progress and plans to relocate FPSO upgrade work from the Middle East to Asia.

The AIM-traded oil and gas company, which holds interests in the North Falkland Basin, said the first two phases of Sea Lion would use the Aoka Mizu FPSO, with production capacity of 55,000 barrels of oil per day, equivalent to 19,250 barrels per day net to Rockhopper.

Rockhopper said Navitas was also investigating an acceleration of later phases of the development and had signed a memorandum of understanding for an additional FPSO.

If progressed, the second vessel could increase Sea Lion production capacity by a further 125,000 barrels per day, or 43,750 barrels per day net to Rockhopper.

The company said there was no guarantee the MOU would be converted into legally binding agreements.

Navitas also said that, because of the conflict in Iran, it had decided to move the upgrade location for the Aoka Mizu FPSO from the Middle East to Asia.

The change was expected to add about $45m to the current development budget.

Rockhopper said it benefitted from a loan from Navitas covering two-thirds of its 35% equity requirement for phase one, meaning the net increase in its equity costs would be $5.25m. The company said it remained funded for phase one of the project.

Development work in the Falkland Islands has started, initially focused on preparing the dock and shore base. Later this year, work is expected to begin on worker accommodation and further infrastructure ahead of drilling activity.

Manufacturing of long-lead items for phase one is ongoing.

The owner of the Aoka Mizu FPSO has said production by its current operator has ended, with disconnection works expected to be completed by the end of May before the vessel sails to the shipyard for upgrade work.

Drilling and completion works were scheduled to begin at the start of 2027, with first oil from phase one still expected in the first half of 2028.

Chief executive Samuel Moody said Rockhopper was pleased the project remained on track following the decision to move FPSO work to Asia in light of the security situation arising from the Iran conflict.

"We are equally excited at the prospect that the development of additional barrels might be accelerated with the signing of the MOU for a second FPSO giving the opportunity to add a further 125,000 barrels per day of production to the 55,000 barrels per day from the first two phases," he said.

At 1057 BST, shares in Rockhopper Exploration were up 3.3% at 81.5p.

Reporting by Josh White for Sharecast.com.

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