Rockhopper Exploration, a UK-based oil and gas exploration and production company, has earmarked $44 million from its existing cash reserves to obtain a 35% interest in a second FPSO planned to be deployed at an oil project in the North Falkland Basin, bringing the basin one step closer to unlocking its long-awaited offshore potential.
The acquisition of the FPSO OSX-1 was announced in August 2026, a move that secured the second unit for use in the accelerated development of the Central Development Area at the Navitas Petroleum-operated Sea Lion oil project.
Rockhopper has now confirmed its entrance into an agreement to acquire its 35% pro rata participating interest in this FPSO. The firm has agreed to subscribe for $44 million of ordinary shares in a newly incorporated special purpose vehicle (SPV) that owns the unit.
The company emphasizes that the subscription will be funded from its existing cash resources. The amount reflects the UK firm’s 35% share of the previously disclosed aggregate acquisition cost of the FPSO, estimated at approximately $125 million.
The European player elaborated: “The SPV is a newly incorporated private company whose sole asset is the OSX-1 FPSO, and it has no material trading history or other business activities.
“Rockhopper is expected to incur net holding costs, attributable to Rockhopper's 35 per cent pro rata participating interest, of approximately $1.4 million per annum.”
This comes shortly after Navitas shed light on Sea Lion contractor replacements and ongoing Falklands oil development progress following Argentine sanction threats, as illustrated in the recent speech delivered by Javier Milei, President of Argentina.
Following a final investment decision (FID), the project’s post-FID funding requirement is $1.8 billion through to first oil, but the total requirement to project completion is estimated at $2.1 billion.
The first two development phases are expected to use the FPSO Aoka Mizu, which will have a production capacity of 55,000 barrels of oil per day (bopd).
Based on the existing schedule, the drilling works are slated to begin in early 2027, with first oil from Phase 1 slated for H1 2028. The FPSO OSX-1 will increase production capacity by a further 125,000 barrels of oil per day.