Sea Lion’s roar unlocks the funding vault: Falkland Islands’ $2.1B oil project stands at development threshold

December 22, 2025, by Melisa Cavcic

With the final investment decision (FID) out of the way, a financial close is now in place for a giant oil project in the North Falkland Basin (NFB), which will require a $1.8 billion investment to pave the way to first oil and $2.1 billion to project completion.

Sea Lion FPSO and Phase 1 & 2 development layout; Source: Navitas

Shortly after the final investment decision for the Sea Lion oil project in the North Falkland Basin was revealed, Navitas’ partner, Rockhopper Exploration, confirmed the completion of the financial close. As a result, the project will proceed to completion and the firm will launch the open offer.

The company claims that all key contracts in connection with Phase 1 of the Sea Lion project have been negotiated and entered into, with the budgeted costs from the FID to project completion, including appropriate schedule and capex contingencies and financing costs, remaining at $2.1 billion. Taking into account the proceeds of the placing, Rockhopper explains that it is fully funded for its equity portion of Phase 1.

Sam Moody, Chief Executive Officer of Rockhopper Exploration, commented: “I am delighted that we have reached financial close on the Sea Lion project, arguably the single most important day in our history since we made the Sea Lion discovery. We now look forward to entering the development phase for the field with our partner and operator, Navitas, who have done an exceptional job both re-engineering the development and leading the financing.

“I am also very pleased that as a result of reaching financial close we are able to complete the Placing and also launch the open offer, where qualifying shareholders can purchase ordinary shares at the placing price. This is a very exciting time for Rockhopper and I would like to thank our shareholders for their support and all at both Navitas and FIG for their work as we enter the next phase of the company’s history.”

The placing has raised aggregate gross proceeds of approximately $142 million from the issue of 201,102,976 new ordinary shares in the company at an issue price of 53 pence per new ordinary share, comprising in aggregate 198,207,354 placing shares and 2,895,622 interest shares.

While the first oil from Phase 1 is planned for 2028, Phase 2, which forms part of the same FDP approved by the government, is anticipated to recover a further gross 2C resource of 149 mmbbls (52.15 mmbbls net to Rockhopper). Currently, it is anticipated that the first well will not be drilled for over 12 months.

With 319 million barrels of certified resources, the project’s initial stage includes drilling 11 subsea wells tied back to a redeployed FPSO vessel. Phase 2 will add a further 12 wells, expected within three years of first oil.