Falkland Islands’ $1.4. billion oil project remains on track for FID in mid-2025
Business Developments & Projects
March 24, 2025, by Melisa Cavcic
Israel’s Navitas Petroleum is still anticipating a final investment decision (FID) for Phase 1 of its giant oil project in the North Falkland Basin (NFB) mid-year.
Showing the Sea Lion FPSO and the Phase 1 & 2 development field layout; Source: Navitas
After delaying a final investment decision last year for its giant Sea Lion oil project in the North Falkland Basin (NFB) by bumping it to 2025 in the aftermath of a cost hike, Navitas continues to estimate Capex to first oil on Phase 1 to be around $1.4 billion and has entered into several front end engineering design (FEED) agreements.
This encompasses a memorandum of understanding (MoU) for a floating production, storage, and offloading (FPSO) unit, which is currently operating in the North Sea, along with various agreements relating to the provision of subsea equipment.
The Israeli player inked a detailed heads of terms deal in December 2021, followed by legally binding definitive documentation in April 2022, with Rockhopper and Harbour, after the latter decided to exit the Sea Lion project in September 2021, enabling Navitas to come aboard.
Once the project’s field development plan (FDP) was updated to encompass an initial development stage, targeting 312 million barrels of oil (mmbbls), up from 269 mmbbls, with the certified gross 2C resources in the overall North Falkland Basin getting boosted from 712 mmbbls to 791 mmbbls, the FDP for the project was sent for approval.
In addition, the operator handed over an environmental impact statement (EIS) to the Falkland Islands government regarding its proposals to drill oil wells and start offshore production from the Sea Lion field’s Northern development area, entailing Phase 1 and 2, and associated activities, kick-starting a statutory period of consultation, which was slated to end on August 13, 2024.
Following the previous update of NFB independent resource report conducted by Netherland Sewell & Associates (NSAI), known as the ‘October 2024 NSAI independent report,’ undertaken on behalf of the Israeli firm, which sees Sea Lion as “the next big thing,” the company’s partner, Rockhopper Exploration, confirmed an updated NFB independent resource report, called the ‘March 2025 NSAI Independent Report.’
