Plans to develop a giant oil field off the Falkland Islands have taken a step forward after the firms behind the project decided on what approach to take.
But a final funding decision on whether or not to go ahead with the already-delayed project to develop the Sea Lion field has now been postponed until 2015, it has emerged.
Rockhopper Exploration and Premier Oil will use a tension leg platform for the 400million barrel field, after initially delaying a decision over what to use to develop the prospect.
Operator Premier Oil,the share price of which dropped more than 6% during the day, had looked at a floating production storage and offloading vessel option for the field, but today confirmed a moored tension leg platform was the preferred option.
Front end engineering and development for the proposed platform will now get underway, but the final decision on investment for the field has been delayed once more.
Last August the timeframe for a final decision slipped to the end of 2014, but Rockhopper confirmed today that investment approval had been moved once again.
“Premier has… indicated that Final Investment Decision is now likely to be taken in the first half of 2015, and Rockhopper continues to expect first oil 3½ – 4 years after project sanction,” the company said today.
The £3.3billion project sits in the North Falkland Basin, around 200km north of the Falkland Islands.
Once online, the field is expected to produce up to 85,000 barrels of oil per day.
Watch our video with Jeremy Cresswell on what happens next in the Falklands below
“The Tension Leg Platform provides operational and commercial advantages over the FPSO alternative and it was worth taking the extra time needed to evaluate the option,” said Rockhopper chief executive Sam Moody.
“We now move forward into the front end engineering and development stage with a view to making a final investment decision in 2015.”
The news comes as Premier said it appointed Neil Hawkins to oversee the execution of the Sea Lion project.
“Neil’s transfer to the Falkland Islands Business Unit recognises the importance of the Sea Lion project to the company,” said chief executive Simon Lockett.
Meanwhile Rockhopper’s Zebedee, Jayne East, Chatham and Elaine/Isobel prospects are closing in on drilling with the tender process for a rig now underway ahead of the first well being spud at the end of the year.
Recommended for you
