Project Sea Lion=300 Million Barrels of Oil

The Sea Lion project, located 220 km north of the Falkland Islands, is a major offshore oil development that has progressed through several phases since its discovery in 2010. Below is a detailed overview of its key aspects:

1. Ownership and Operatorship

• Navitas Petroleum holds a 65% working interest and operates the project, while Rockhopper Exploration retains 35%. Navitas acquired its stake in 2022 after Harbour Energy (formerly Premier Oil) exited the project.

2. Resource Estimates and Reserves

• The field contains 1.7 billion barrels of oil in place, with 500 million barrels of 2C recoverable resources in the Sea Lion field alone. Recent updates from Netherland Sewell & Associates (NSAI) in 2023–2024 increased total gross 2C resources across licenses to 712–791 million barrels, including satellite fields like Isobel-Elaine.

3. Development Plan and Phases

• Phased Development:
  • Phase 1: Drilling 18 wells (11 pre-first oil) with an initial FPSO (Floating Production Storage and Offloading) vessel.
  • Phase 2: Adding 5 wells ~42 months after first oil to extend the production plateau.
• Production Targets:
  • Plateau rate of 80,000 barrels per day (bpd) and a peak of 100,000 bpd.
  • First oil is expected 30–42 months after Final Investment Decision (FID), with Navitas targeting FID in 2024 and first oil by late 2026.

4. Economic and Technical Updates

• Cost Reductions: Upfront capital expenditure (capex) for Phase 1 was revised to $1.2–1.8 billion, down from earlier estimates, with a breakeven price of under $25–27.60 per barrel.
• NPV and Financing: The project’s post-royalty NPV10 (net present value at a 10% discount rate) is $4.3 billion at $77/barrel Brent crude.

5. Environmental and Regulatory Progress

• A public consultation on the Environmental Impact Statement concluded in August 2024, addressing concerns about drilling 23 wells and producing over 300 million barrels of oil over 30 years. The Falkland Islands Government emphasized balancing economic benefits with environmental protection.

6. FPSO Strategy

• Navitas plans to use a redeployed FPSO with a disconnectable turret for Phase 1, targeting an initial plateau of 55,000 bpd. A larger FPSO may replace it later to boost capacity to 80,000+ bpd, aligning with basin-wide potential for 200,000 bpd across three FPSOs.

7. Current Status (as of April 2025)

• With FID anticipated in 2024, the project is likely in the pre-development stage, finalizing financing and supply chain logistics. Recent updates suggest further optimizations in drilling and cost efficiency to enhance viability.

Challenges and Outlook

• The remote location and geopolitical sensitivities around the Falklands pose logistical and political risks. However, Navitas’ phased approach and focus on cost reduction aim to mitigate these challenges, positioning Sea Lion as a cornerstone of the Falklands’ economic future.

For further details, refer to the Navitas project page or Rockhopper’s updates.