South Atlantic-focused oil group Rockhopper says it has delayed the concept process for the giant Sea Lion field to find alternate solutions after resolving its tax battle with the Falkland Islands government.
The firm revealed yesterday it had agreed a settlement deal over a disputed capital gains tax bill with the island authorities following its sale of a 60% stake in the giant Sea Lion oil field.
Despite posting a £34million loss for the first six months of the year – mostly through tax settlement costs – the company said its future plans looked very positive with £160million in the bank.
Rockhopper chief executive Sam Moody revealed the company was, with Sea Lion partner Premier Oil, closing in on a decision on how to develop the field, with a floating production unit a viable option for the project.
“As part of a rigorous process assessing what development approach will deliver most value, a tension leg platform solution is also now under consideration as the partners believe it may offer both operational and financial advantages versus an FPSO,” he said.
“As a result, completion of the concept selection phase of the project has been delayed to allow time for the completion of the work that we believe is critical to ensure the development plan is designed to maximise the financial returns for all of Sea Lion’s stakeholders.”
Completing the concept process for the field is due to be completed early next year, he added, with new modelling of the region suggesting more than 400million barrels of oil could be contained within it.
Rockhopper also confirmed it planned to start an exploration programme on the Zebedee, Chatham, Isobel/Elaine and Jayne East prospects after farming into them, worth work due to start by the beginning of next year.
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