Navitas cuts cost of phased Sea Lion offshore project

Offshore staff

LONDON – Navitas Petroleum LP has issued proposals for a new development plan for the Sea Lion field in the offshore North Falkland basin.

According to partner Rockhopper, these are in part based on an independent resource report by Netherland Sewell & Associates (NSAI), showing scope for reductions in upfront capex and life of field costs, and increased resource recovery.

Highlights of the new Sea Lion plan, assuming a leased FPSO, are:

23 wells, 18 to be drilled in phase 1, with 11 in place prior to first oil. Five more wells to be drilled in Phase 2, around 42 months post first oil
Total resource to be developed: 269 MMbl, with a peak production rate of 100,000 b/d.
Total capex: $2.2 billion (Phase 1 capex $1.8 billion, and pre-first oil capex of $1.3 billion)
Per barrel cost – life of field – capex: $7.50/bbl opex $20.10·/bbl total cost: $27.60/bbl

The new plan, which is undergoing further optimization, represents a material reduction in upfront and life of field cost compared to the previous development scheme, Rockhopper said, while still achieving a plateau production rate in the initial stage of around 80,000 b/d.

Attention will now focus on refining the financing arrangement with a view to attaining FID in 2024. Using a redeployed FPSO, the timeline to first oil could be 30 months, with drilling starting around 12 months post-FID.

Rockhopper holds a 35% interest in Sea Lion and associated North Falkland basin licenses and benefits from various loans from Navitas in relation to the development.

CEO Samuel Moody said: “Our cooperation with Navitas is making real progress technically and commercially, and we believe the newly reworked Sea Lion project represents an eminently financeable proposition, despite all the well-known political challenges.”

03.24.2023