Rockhopper Exploration PLC is continuing discussions with Israel’s Navitas Petroleum LP about its potential entry into the Falkland Island Sea Lion project and will work with Harbour Energy PLC and the government to ensure an orderly exit by Harbour from the Falkland Islands.
Harbour, created through the merger of Chrysaor and Premier Oil and a 60% non-operated interest holder in Sea Lion, noted Sept. 23 its decision to explore options to exit the project after management deemed its development was not a strategic fit for the company (OGJ Online, Oct. 6, 2020).
In early 2020, Navitas agreed to acquire a 30% interest in Sea Lion licenses PL032, PL004b, and PL004c.
The Sea Lion project (with independently audited 2C resources over 500 million bbl) was discovered and appraised by Rockhopper as operator with 100%.
The previously announced Heads of Terms with Premier Oil and Navitas will expire Sept. 30 (unless extended by mutual consent). If it expires, Harbour will have an initial 90 days to elect how to proceed with its exit. Rockhopper will continue to be funded (excluding license fees, taxes, and project wind down costs) by Harbour during that period under terms agreed Jan. 7, 2020 and Apr. 30, 2020.
Rockhopper and Harbour received extensions of North Falkland basin petroleum licenses from the Falkland Islands government, including the Sea Lion discovery area in March (OGJ Online, Mar. 5, 2021).
Phase 1 of Sea Lion development, which is envisioned to entail exploitation of 250 million bbl of oil for an estimated investment of $1.8 billion, has been stalled by funding issues.
In its Sept. 23 statement, Harbour Energy said it also plans to exit exploration license interests in Brazil’s Ceará basin and the Mexico’s Burgos basin.