Rockhopper Exploration, a UK-based company engaged in oil and gas exploration and production, has allocated $44 million from its cash reserves to acquire a 35% stake in a new FPSO (Floating Production, Storage and Offloading unit) that will be utilized in the oil project in the northern Falkland Islands oil field.
Details of the Purchase and Investment
This FPSO purchase, named OSX-1, was announced in August 2026 and is recognized as a key initiative in the accelerated development of the central area of the Sea Lion oil project, which is managed by Navitas Petroleum. The company has now confirmed an agreement to acquire its 35% share in this FPSO. Rockhopper has agreed to invest $44 million through the purchase of ordinary shares in a newly established special purpose vehicle (SPV) that owns this unit.
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Rockhopper has emphasized that this investment will be funded from its existing cash resources. This amount reflects Rockhopper's 35% share of the previously announced total cost for acquiring this FPSO, which is estimated to be around $125 million.
Maintenance Costs and Future Planning
The company has stated that Rockhopper expects the net maintenance costs related to its 35% share of this FPSO to be approximately $1.4 million per year. This comes as Navitas recently provided updates regarding the replacement of Sea Lion contractors and the progress of oil development in the Falkland Islands, especially following sanction threats from Argentina.
Following the final investment decision (FID), the financial requirement after the decision for the project until first oil production is estimated at $1.8 billion, while the total requirement until project completion is estimated at about $2.1 billion. It is anticipated that the first two development phases will utilize the FPSO Aoka Mizu, which has a production capacity of 55,000 barrels of oil per day.
According to the existing plan, drilling operations are set to commence in early 2027, with first oil production from the first phase scheduled for the first half of 2028. The FPSO OSX-1 will increase production capacity to 125,000 barrels of oil per day.
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