In a posting on its website, oil and gas company Rockhopper Exploration plc , with key interests in the North Malvinas Basin, reported on the recent update by its operating partner Navitas Petroleum LP on the progress of the Sea Lion development, including an updated independent resource report by Netherland Sewell & Associates (NSAI).
The new report classifies the resources into three areas: Northern, Central and Southern Development Areas. The first of these is expected to recover a total of 319 MMbbls of oil. In the central area, an additional development plan has been certified to develop Phase 1, with the exploitation of 12 wells. This increases the gross 2C oil resources pending development from 312 MMbbls to 532 MMbbls out of a total of 917 MMbbls of discovered and certified oil resources.
Thus, according to the Independent Report of According to NSAI’s October 2024 certified gross recoverable oil resources, they have increased from 791 MMbbls to 917 MMbbls . In addition, NSAI has certified 2.1 TCF of 2C recoverable gas resources. This represents a 16% increase in oil resources compared to the resource stated in the January publication of this year.
Maximum daily hydrocarbon output was set at about 55,000 bbls/d , and the gross capital expenditure required to extract the first oil has increased - due to inflation - from $ 1.25 billion to $1.4 billion (including contingency). “Despite this increase, the project economics remain very strong,” the report said.
On the other hand, the same report indicates that, in environmental matters, after the presentations made last July by the business consortium to the illegitimate colonial government in Malvinas, no further public consultation will be required.
Following these developments, Navitas indicates that the first drilling is scheduled for mid-2025 and the first oil to be extracted, for the fourth quarter of 2027.
As for total investments for the entire operation, the amount was set at 4 billion dollars, with a break-even production point of approximately 24 dollars per barrel .
Fountain:
