With the first phase on track for start-up in 2028, an oil project in the North Falkland Basin (NFB) is looking into expediting a capacity boost through the development of subsequent phases in the Falkland Islands.

Following a final investment decision (FID), a financial close was secured for Navitas’ Sea Lion oil project in the North Falkland Basin, which will require an investment of $1.8 billion to lay the groundwork for first oil and $2.1 billion to project completion. The first two development phases are going to use the FPSO Aoka Mizu, which will have a production capacity of 55,000 barrels of oil per day (bopd).

Navitas, as the operator of the project, is investigating ways to accelerate the development of subsequent phases of the Sea Lion project. To this end, the firm signed a memorandum of understanding (MOU) for an additional FPSO, which could increase the production capacity by a further 125,000 bopd.

“There is no guarantee that this MOU will convert to legally binding agreements,” highlighted Navitas’ partner, Rockhopper Exploration, while disclosing that the operator has decided to change the location for the upgrades of the FPSO Aoka Mizu from the Middle East to Asia due to the conflict in Iran.

While the location change will add an approximate $45 million to the current development budget, Rockhopper claims to benefit from a loan from Navitas, covering 2/3 of its 35% equity requirement for Phase 1 of the Sea Lion development.  

The firm elaborates that its net increase in equity costs is $5.25 million, but emphasizes that it remains funded for Phase 1 of the project. According to Navitas, development works in the Falkland Islands have begun and are focused on preparing the dock and shore base at this stage.

Later this year, construction of worker accommodation and additional infrastructure will also begin in preparation for drilling. The manufacturing of long lead items for Phase 1 is ongoing. The owner of the FPSO Aoka Mizu confirmed in early May 2026 that the production with the current operator had concluded; thus, disconnection works are expected to be completed by the end of May.

Afterward, the FPSO will sail to the shipyard for upgrade work to adapt it to Sea Lion’s requirements. While the drilling and completion works are scheduled to kick off at the beginning of 2027, the first oil from the Phase 1 is still currently slated for H1 2028.

Samuel Moody, Chief Executive Officer of Rockhopper, commented: “We are delighted that the project is on track having taken the prudent decision in the light of the security situation arising from the Iran conflict to move the FPSO work from the Middle East to Asia.  

“We are equally excited at the prospect that the development of additional barrels might be accelerated with the signing of the MOU for a second FPSO giving the opportunity to add a further 125,000 barrels per day of production to the 55,000 barrels per day from the first two phases.”

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