Rockhopper Exploration plc announced that Premier Oil will today provide an update on the Sea Lion Development at a capital markets day.
The following details of the Sea Lion Development using a TLP concept will be disclosed:
Costs (unescalated in 2013 money):
It is estimated capital costs (gross) for Phase 1 of the Sea Lion development will total $US5.2 billion comprising $3.5bn for surface facilities and $1.7bn for drilling. Capital expenditure to first oil is expected to be $3.8bn. Annual operating expenditure (gross) is expected to average $260 million including floating storage unit rental and well interventions.
Schedule:
Premier Oil expects to award the front end engineering and design contracts in 2Q 2014 and to submit the draft field development plan at the end of this year. Also at the end of this year, engineering procurement and construction contracts will be awarded. Field sanction is anticipated in 2Q 2015. Rockhopper continues to anticipate first oil 3½ to 4 years after project sanction.
Resources:
Phase 1 of the Sea Lion Development is expected to recover 293MMbbl over 25 years.