Rockhopper Exploration has informed that the operator Navitas Petroleum is studying an accelerated expansion of the Sea Lion offshore oil development north of the Falkland Islands after signing a memorandum of understanding for a second floating production, storage and offloading vessel (FPSO).
The additional FPSO could raise Sea Lion production capacity by a further 125,000 barrels of oil per day, in addition to the 55,000 bopd planned from the first two phases of development, Rockhopper said.
Rockhopper, which holds a 35% working interest in Sea Lion, said the proposed second FPSO could add about 43,750 bopd net to the company. It added there was no guarantee the memorandum of understanding would result in binding agreements.
The update comes several months after Sea Lion partners approved a final investment decision for Phase 1 of the long-delayed North Falkland Basin project, which targets first oil in 2028.
Navitas, which holds the remaining 65% interest in Sea Lion, also said development work on the Falkland Islands had started, initially focused on preparing the dock and shore base facilities. Construction of worker accommodation and additional infrastructure linked to future drilling activities is expected to begin later this year.
Manufacturing of long-lead items for Phase 1 is ongoing, the operator added.
Rockhopper said the owner of the Aoka Mizu FPSO had confirmed in early May that production for the vessel’s current operator had concluded. Disconnection work is expected to finish by the end of May, after which the FPSO will sail to a shipyard for upgrade work ahead of deployment on Sea Lion.
The company said drilling and completion activities remain scheduled to begin in early 2027, with first oil from Phase 1 still expected in the first half of 2028.
“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,” said Samuel Moody, Chief Executive Officer of Rockhopper.
Sea Lion received final investment approval in December 2025 after securing financing commitments and regulatory approvals from the Falkland Islands Government.
At the time, the partners said Phase 1 would target 170 million barrels with peak production of around 50,000 bopd, while Phase 2 was expected to recover a further 149 million barrels.
An independent resource assessment in 2025 estimated full-field 2C resources of 917 million barrels.