Progress on the tendering for the Sea Lion project in the South Atlantic is being made by operator Premier Oil and partner Rockhopper Exploration, although at a slower pace than hoped.
Although circumspect about the progress of the project since statements at a capital markets day presentation by Premier earlier this quarter, the operator is looking for bids for FEED work on a TLP hull and topsides, the favoured concept for the field development offshore the Falkland Islands. However the award of contracts is thought to be some way off, DI understands.
Asked about progress on the FEED tenders, the operator would only confirm they were underway, while partner Rockhopper is also saying no more.
Premier may issue further details in an interim statement due in July.
As DI previously reported earlier this year, Premier and Rockhopper are looking to award contracts for the Sea Lion project early in 2015, including for a TLP hull and topsides comprising drilling, process utility and living quarters modules, as well as a flare boom.
Prior to that Premier had previously indicated it would award FEED contracts by the end of the second quarter of this year, and seek to compile a shortlist of EPC bidders by the end of this year.
Sea Lion, in a water depth of 450 m (1,500 ft) in the North Falklands basin, is estimated to involve a likely capex of US?$5.2 billion to tap an estimated 1 Bbbl of prospective resources in an initial development phase. That phase is based on recovery of 293 MMbbl over a 25-year field life via 32 wells. First oil is predicted within approximately five years, by 2019.
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