Falklands’ oil industry, Rockhopper plans equity raise for second FPSO

Rockhopper Exploration is preparing to raise capital to fund its share of a second FPSO, OSX-1, for the Sea Lion oil field in the Falkland Islands. The vessel, which will cost $125 million, will be acquired by Navitas Petroleum as part of its plan to boost production to 125,000 barrels per day. Rockhopper, which has a 35% stake in the development, will need additional funding to acquire its percentage interest in the FPSO and cover other expenses.

Navitas has already exercised its option to acquire the vessel, with completion expected within the next month. Rockhopper anticipates securing financing for the capital raise and is working with Navitas to determine the optimal structure for the project's participation in OSX-1. The first phase of the Sea Lion project is currently underway, with drilling scheduled to begin in early 2027, with first oil expected in the first quarter of 2028.

Meanwhile, the FPSO vessel Aoka Mizu, with a capacity of 55,000 barrels per day, is en route to a shipyard in Asia for upgrades. Onshore work in the Falkland Islands is also progressing, focusing on quay and shore-based components. Partners in the project aim to achieve a final investment decision (FID) for the CDA during the first half of 2028, with first production from Phase 1 expected by the end of 2030.