Offshore Falklands discovery an attractive farm-in prospect - report

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Tuesday, October 18, 2016

Attractive project economics and improved relations between Argentina and the UK could make the offshore Sea Lion oil discovery in the Falkland Islands an attractive farm-in prospect.

That's according to a report published Tuesday by Edison Investment Research, which said that Sea Lion would break even at an estimated oil price of US$45/b, based on the latest analysis.

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First oil is now expected to be reached in 2022 at Sea Lion, which is shared by Rockhopper Exploration and Premier Oil.

"The Sea Lion complex is an important discovery and one of the largest undeveloped fields globally," the report said.

"A combination of political constraints, low oil price and financing issues has meant a slower development timeline than hoped, but this does not diminish the resource in a well appraised, well understood reservoir."

Completion of front-end engineering and design for a floating production storage and offloading vessel at Sea Lion is due to finish in the first half of 2017.