SBM Offshore has been awarded FPSO Front End Engineering and Design (FEED) contract following the completion of Pre-FEED work for Phase 1a of the Sea Lion development, the UK-based oil and gas exploration company, Rockhopper, said on Wednesday.
Reportedly, the work on the discovery, located some 220 kilometers north of the Falkland Islands in 450 meters of water depth, is expected to take approximately 15 months to complete.
Furthermore, according to the company’s project update, preferred contractors have been selected for the provision of the various subsea system facilities, and according to Rockhopper, the remaining FEED contracts, for SURF, SPS and Flexibles, will be awarded during Q1 2016.
The Pre-FEED has identified an increase of recoverable resources from 160 mmbbls to 220 mmbbls and daily field peak production from some 60,000 to 85,000 bbls. Moreover, field life has been increased from 15 to 20 years.
The company said that the estimate of pre-first oil capex requirement remains at US$1.8 billion, and that its Final Investment Decision (FID) is now targeted for mid-2017 with a target first oil date during 2020.
To remind, in July 2012, Premier Oil farmed in for 60% of Rockhopper Exploration’s licence interests in the North Falklands Basin, including the Sea Lion discovery.
Subsea World News Staff