Rockhopper Exploration has taken a final investment decision (FID) on Phase 1 of the Sea Lion oil development north of the Falkland Islands, allowing the long-delayed…
Rockhopper Exploration has taken a final investment decision (FID) on Phase 1 of the Sea Lion oil development north of the Falkland Islands, allowing the long-delayed project to proceed after securing financing commitments and regulatory approvals.
Partner and operator Navitas Petroleum has also approved FID. Rockhopper said both boards have approved financing arrangements for the first phase of development, with financial close expected in the coming weeks once several customary conditions precedent are met.
The Falkland Islands Government has approved the field development plan for Phases 1 and 2 of the Northern Development Area, enabling the Sea Lion licenses to enter a 35-year exploitation phase.
The company said completion of its previously announced $140 million placing remains conditional on FID, receipt of all required regulatory approvals and financial close. The placing and an accompanying open offer will be launched once financial close occurs.
Following technical and commercial due-diligence work, Rockhopper said the post-FID funding requirement totals $1.8 billion to first oil and $2.1 billion to project completion, including contingencies and financing costs. The project financing package includes $1.0 billion of senior debt, of which $350 million is attributable to Rockhopper, with the remaining capital provided through joint-venture equity and post-first-oil cash
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