10th Dec 2025 14:25
(Alliance News) - Rockhopper Exploration PLC on Wednesday said it has sanctioned the Sea Lion field after it took a final investment decision on the development of phase 1.
The Salisbury, England-based oil and gas miner said partner and operator, Navitas Petroleum Development and Production Ltd, has also taken a final investment decision relating to the project.
Discovered in 2010 by Rockhopper, the Sea Lion field is located offshore to the north of the Falkland Islands.
The Falkland Islands Government approved the field development and production programme for phases 1 and 2 of the northern development area within the Sea Lion field.
Rockhopper announced in July that its USD140 million placing was subject to each of Navitas and the company having made a public announcement that FID has been taken, along with the required regulatory consents and approvals, and financial close occurring.
Therefore, the company said it will make an additional announcement at the time of financial close, at which point it is expected that the placing will proceed to completion and the previously announced open offer will be launched.
The financial close is subject to a limited number of customary conditions precedent. It is expected to occur over the coming weeks.
Rockhopper said that the total post-decision funding requirement is USD1.8 billion to first oil and USD2.1 billion to project completion.
The project financing consists of USD1.0 billion of senior debt, of which USD350 million is Rockhopper debt, with the balance provided through a combination of joint venture equity and post-first oil cash flows.
With first oil currently planned for 2028, phase 1 will target 170 million barrels at a peak production of approximately 50,000 barrels a day, the company said.
Rockhopper said it expects subsequent phases to be self-financed using the excess cash flows of phase 1.
"The sanctioning of Sea Lion is a major milestone for Rockhopper and all its stakeholders and represents the culmination of over 20 years of work," said Chief Executive Sam Moody.
"When we first discovered Sea Lion in 2010, it was a hugely exciting play-opening well, and the vast amount of work undertaken since then, first in the ensuing drilling campaigns and then the many years of engineering and commercial refinement, is now moving towards its ultimate fruition as we move into the development phase," Moody added.
Also on Wednesday, Borders & Southern Petroleum PLC, a London-based independent oil and gas exploration company with assets offshore the Falkland Islands, noted Rockhopper's announcement:
"We believe that FID on Sea Lion as well as the opening up of a new oil province will re-focus attention from both the oil industry and its investors on the area and Darwin."
Shares in Rockhopper fell 7.4% to 80.96 pence on Wednesday afternoon in London, while Borders & Southern were down 0.9% at 11.50p.
By Roya Shahidi, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
RockhopperBorders & Sth.