London-based Premier Oil, and partner Salisbury-based Rockhopper Exploration Plc, selected a tension leg platform (TLP) with an integral drilling rig, to develop the Sea Lion project north of the Falkland Islands.
The company said that, in comparison with an FPSO, the TLP offers a “more robust and lower cost development scheme.” The partners are still in the process of optimizing and preparing the TLP FEED , which is expected to begin in Q2 2014, with project sanction expected in 2015.
“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,” Sam Moody, Rockhopper Exploration CEO said.
Premier said the final investment decision will now likely be taken in 1H 2015, and Rockhopper projects first oil in 2018-2019.
Meanwhile, the Zebedee, Jayne East, Elaine/Isobel, and Chatham prospects have reached drillable status and a rig-tender process is underway.
This rig tender is being conducted in conjunction with Falkand Oil & Gas and Desire Petroleum. The two companies farmed-out to Rockhopper and Premier as part of a four-way deal in October 2013.
Rockhopper plans to award a contract in 1H 2014 and to spud the first well in late 2014 or early 2015.
The Sea Lion oil discovery was made in financial year 2010, and Premier farmed in for 60% of Rockhopper’s license interests in the North Falklands basin, including the Sea Lion discovery, in July 2012. Premier initially paid US$231 million—plus an exploration and development carry of up to $48 million and $722 million, respectively.
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