Rockhopper Exploration has taken a final investment decision (FID) on Phase 1 of the Sea Lion oil development north of the Falkland Islands, allowing the long-delayed project to proceed after securing financing commitments and regulatory approvals.
Partner and operator Navitas Petroleum has also approved FID. Rockhopper said both boards have approved financing arrangements for the first phase of development, with financial close expected in the coming weeks once several customary conditions precedent are met.
The Falkland Islands Government has approved the field development plan for Phases 1 and 2 of the Northern Development Area, enabling the Sea Lion licenses to enter a 35-year exploitation phase.
The company said completion of its previously announced $140 million placing remains conditional on FID, receipt of all required regulatory approvals and financial close. The placing and an accompanying open offer will be launched once financial close occurs.
Following technical and commercial due-diligence work, Rockhopper said the post-FID funding requirement totals $1.8 billion to first oil and $2.1 billion to project completion, including contingencies and financing costs. The project financing package includes $1.0 billion of senior debt, of which $350 million is attributable to Rockhopper, with the remaining capital provided through joint-venture equity and post-first-oil cash flows.
An independent resource report by Netherland, Sewell & Associates in June 2025 estimated full-field 2C resources of 917 million barrels, including 321 million barrels net to Rockhopper, with 255 million barrels classified as development pending. NSAI assessed the NPV10 of Rockhopper’s 255 million barrels at $1.85 billion based on a $70 Brent oil price.
Phase 1 of Sea Lion is expected to target 170 million barrels with peak production of around 50,000 barrels per day and first oil planned for 2028. Phase 2 is expected to recover a further 149 million barrels.
Navitas has signed key commercial contracts as part of FID, including an FPSO charter and associated EPC and O&M agreements, a drilling rig contract, a framework agreement for drilling and completion services, and a SURF engineering, procurement and installation contract.
Rockhopper said its US$350 million senior debt facility will carry a seven-year tenor with SOFR-based margins ranging from 525 basis points during pre-completion to 425–475 basis points post-completion, depending on the year. Mandatory hedging levels will apply in the first three years after project completion.
As part of the FID process, Rockhopper and the Falkland Islands Government agreed a final settlement of previously disclosed tax disputes relating to farm-outs in 2012 and 2022.
“The sanctioning of Sea Lion is a major milestone for Rockhopper and all its stakeholders and represents the culmination of over 20 years of work.
“While much remains to be done as the partnership progresses the project and executes the significant amount of work required to deliver First Oil, I would like to take this opportunity to thank both Navitas and our team at Rockhopper, without whom this would not have been possible. We now look forward to continuing our excellent working relationship Navitas as we look to continue to unlock value for all our stakeholders,” said Sam Moody, Chief Executive Officer.
Rockhopper holds a 35% working interest in Sea Lion and associated NFB licenses and benefits from various loans from Navitas in relation to the development. Navitas is the operator and holds the remaining 65% working interest.
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