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Development of the deepwater Sea Lion accumulation in the North Falklands Basin will be based on a Tension Leg Platform (TLP), it has emerged.
As predicted last month (see DI, 23 December 2013, page 1) project partners Rockhopper Exploration and operator Premier Oil have agreed that a TLP is the best way forward to develop the field, after deciding against the originally preferred concept – a competing FPSO (Floating Production, Storage and Offloading vessel). Confirming the conclusion of the concept selection process for the development, Rockhopper said Premier had now recommended a TLP as the “...most suitable technical and commercial solution for the development of Sea Lion”.
DI said last month that the TLP option, with an integral drilling rig, had distinct operational and cost advantages, although the FPSO was also economically viable.
Premier is also indicating a final investment decision for the project will be taken in the first half of next year, with first oil anticipated to follow between three and a half to four years later.
Rockhopper further indicates that it expects a study contract for the TLP will be placed with a supplier as soon as mid-year. Although the preferred solution for Sea Lion had been an FPSO, that changed as soon as Premier came onboard and instigated a TLP study as an alternative.
The company farmed in for 60% of Sea Lion in October 2012, and became operator in November that year, after agreeing to pay Rockhopper US $231 million initially, plus a carry on Rockhopper’s exploration and development costs of $48 million and $722 million respectively.
The operator is aiming to develop estimated recoverable reserves of 394 MMboe from Sea Lion, which sits in a water depth of 450 m (1,776 ft) approximately 200 km north of the Falkland Islands in the South Atlantic.
Premier says it will now move into a Front End Engineering and Design (FEED) process, with project sanction targeted for 2015. Production at plateau is forecast will be 80–85,000 b/d of oil.
TLPs have of course been widely used for deepwater developments elsewhere, particularly in the US Gulf of Mexico on the Mars, Magnolia, Marco Polo and Shenzi projects, as well as on ExxonMobil’s West African Kizomba development. The first ever TLP was deployed in the UK North Sea on the Hutton field in the early 1980s for Conoco.
Likely contenders for various parts of the Sea Lion TLP include Modec, South Korea’s Hyundai Heavy Industries (which was contracted along with Doris Engineering to supply a TLP for Total offshore Congo in a $700 million deal last March), CB&I, Aker Solutions, Technip, Samsung, SBM Offshore and FloaTEC. Alliance Wood Group also performed FEED, detailed engineering and design, procurement and fabrication support for the 3,450 ton Prince TLP installed in a water depth of 454 m (1,490 ft) in the GoM – a similar water depth to Sea Lion - for client El Paso Energy that was designed to produce 80 MMcf/d and 50,000 b/d of oil. Wood Group Mustang is also carrying out the FEED on Hess’ Stampede TLP in the GoM.
Premier has also flagged up its plans for more Falklands exploration activity, targeting the Zebedee, Jayne East, Elaine/Isobel and Chatham prospects, all of which have now been matured to drillable status, it says. A rig tender has been issued to drilling contractors with the first well for this new South Atlantic campaign expected to spud late this year or early in 2015.
Elsewhere, Premier will acquire 3D seismic across three Brazilian blocks it secured in the licensing round last year with a view to drilling the first well there in 2016, the company said in an operations update.
It has also appointed a manager to oversee the Falkland Islands deepwater project. Neil Hawkings has been appointed as Premier’s director in the Falklands to oversee execution of the Sea Lion project as head of the company’s Falklands Business Unit.
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