The Sea Lion FPSO development in the North Falkland Basin has relocated its vessel upgrade programme from the Middle East to Asia following the escalation of the Iran conflict, adding approximately US$45 million to the Phase 1 budget. Operator Navitas Petroleum has simultaneously signed a memorandum of understanding for a second FPSO capable of delivering a further 125,000 barrels of oil per day.
The Sea Lion FPSO project centres on the Aoka Mizu, a vessel with a nameplate production capacity of 55,000 bopd that will serve the first two development phases. The Aoka Mizu completed operations with its current operator in early May 2026, with disconnection works expected to conclude by end of May before the vessel sails to an Asian shipyard for upgrade work.
The budget increase is partially absorbed by an existing financing structure. Rockhopper Exploration, which holds a 35% equity stake in the North Falkland Basin licences, benefits from a Navitas loan covering two-thirds of its Phase 1 equity requirement. The net increase to Rockhopper’s equity costs is US$5.25 million, and the company confirms it remains fully funded for Phase 1.
Second Sea Lion FPSO MOU Signals Phased Expansion
The MOU for an additional vessel represents a significant development in the long-term production profile of the Sea Lion FPSO programme. If converted to binding agreements, the second unit would increase total field capacity by 125,000 bopd — equating to 43,750 bopd net to Rockhopper — on top of output from the first two phases.
Navitas has confirmed there is no guarantee the Sea Lion FPSO MOU will convert to a legally binding agreement. Development of subsequent phases beyond Phase 1 remains under investigation, with no confirmed schedule for those stages.
Phase 1 Timeline: Drilling from Early 2027, First Oil H1 2028
On-island works have commenced in the Falkland Islands, currently focused on dock preparation and shore base readiness. Worker accommodation construction and additional infrastructure works are scheduled to begin later in 2026, ahead of drilling activity.
Long-lead item manufacturing for Phase 1 continues in parallel. Drilling and completion works are scheduled to begin in early 2027, with first oil from the Sea Lion FPSO Phase 1 still targeted for the first half of 2028. The project timeline has not changed as a result of the shipyard relocation.
Rockhopper CEO Samuel Moody described the Asia decision as prudent given regional security conditions, and flagged the second Sea Lion FPSO MOU as an opportunity to accelerate future production phases. The field was originally discovered by Rockhopper in 2010.
For context on the broader floating production market, see Top 10 FPSO Operators 2026: 180 Vessels, Two Basins and Top 10 Upstream Oil and Gas Companies 2026.
What is the Sea Lion FPSO project?
Sea Lion is an offshore oil development in the North Falkland Basin, operated by Navitas Petroleum. Phase 1 will use the Aoka Mizu FPSO with a production capacity of 55,000 barrels of oil per day.
Why is the Aoka Mizu FPSO moving to Asia?
Navitas Petroleum decided to relocate the FPSO upgrade work from the Middle East to Asia due to the security situation arising from the Iran conflict. The change adds approximately US$45 million to the Phase 1 development budget.
When is first oil expected from Sea Lion?
First oil from Phase 1 of the Sea Lion development remains targeted for the first half of 2028, with drilling and completion works scheduled to begin in early 2027.
What is the second Sea Lion FPSO MOU?
Navitas has signed a memorandum of understanding for a second FPSO that could increase Sea Lion’s production capacity by a further 125,000 bopd. There is no guarantee this MOU will convert to a binding agreement.
What is Rockhopper’s stake in Sea Lion?
Rockhopper Exploration holds a 35% equity interest in the North Falkland Basin licences. Navitas has provided a loan covering two-thirds of Rockhopper’s Phase 1 equity requirement.