$2.1 billion Sea Lion project on track for first oil despite Falklands tensions

Navitas Petroleum, an oil and gas company with exploration and production interests in several regions, is continuing with planned development activities and does not expect the recent political developments over the Falkland Islands to affect the development timetable for its offshore oil project in the North Falkland Basin.

The statement follows media reports concerning comments by Argentine President Javier Milei on Argentina’s claim to the Falkland Islands and the Sea Lion project. Navitas operates the development alongside its partner, Rockhopper Exploration, which relayed the operator’s latest update.

The operator’s statement outlines that the Sea Lion partnership continues to operate under petroleum licenses granted by the Falkland Islands government with the UK government’s support. The comments come as tensions over the Falklands remain a politically sensitive issue between Argentina and the UK.

Argentina maintains its claim to sovereignty over the islands, while the Falkland Islands are a self-governing UK Overseas Territory. However, the partners say the latest developments are not expected to affect their Sea Lion development plans.

“The partnership believes that the recent developments are not expected to have a material effect on the development activities of the Sea Lion project,” Navitas said, adding that the project’s development timetable is not expected to be affected.

A final investment decision (FID) was followed by a financial close for the project, which has a post-FID funding requirement of $1.8 billion through to first oil, while the total requirement to project completion is estimated at $2.1 billion.

The first two development phases are planned to use the FPSO Aoka Mizu, which will have a production capacity of 55,000 barrels of oil per day (bopd). The location for the FPSO’s upgrade work was moved from the Middle East to Asia because of the conflict in Iran.

With the aim of accelerating the development of subsequent phases of the Sea Lion project, Navitas signed a memorandum of understanding (MOU) for an additional FPSO, which could increase production capacity by a further 125,000 bopd. The firm has since exercised an option to acquire the second vessel, OSX-1.

The partners are maintaining that the latest political developments are not expected to disrupt Sea Lion’s progress as development work continues.

The drilling works are slated to begin in early 2027, with first oil from Phase 1 scheduled for H1 2028.

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