Premier Oil has decided to suspend Phase 1 of the Sea Lion oil project in the offshore North Falkland basin to minimize ongoing expenditure, due to current market conditions.
(Courtesy Premier Oil)
Schematic of the Sea Lion project.
Offshore staff
LONDON – Premier Oil has decided to suspend Phase 1 of the Sea Lion oil project in the offshore North Falkland basin to minimize ongoing expenditure, due to current market conditions.
The company said the project is complete from a technical aspect and all work performed to date has been fully documented, so the project can be reactivated once the global outlook improves.
A reduced team will continue to pursue government, commercial and financing negotiations, including the proposed farm-in by Navitas to a 30% interest in the Sea Lion licenses.
Talks also continue on another farm-down agreement with Zarubezhneft for a 50% stake in the Premier-operated Tuna discoveries offshore Indonesia. Under the proposal, the Russian company would carry Premier for its share of a two-well appraisal campaign expected to take place in 2021.
In block 7 offshore Mexico, the sales process for Premier’s 25% interest has been impacted by COVID-19.
FEED continues on the selected development concept for the Zama oil field ahead of submission of the field development plan to Mexico’s government.
