Rockhopper Exploration has allocated $44 million from its existing cash reserves for a 35% interest in the second floating production, storage and offloading vessel planned for the Sea Lion oil project in the North Falkland Basin. Offshore Energy reported that the investment concerns OSX-1, which is intended to support an accelerated development of the project’s Central Development Area.
The acquisition of OSX-1 was announced in August 2026, securing a second production unit for the Navitas Petroleum-operated development. Rockhopper’s commitment represents its 35% share of the vessel’s previously disclosed acquisition cost of approximately $125 million. The UK oil and gas exploration and production company said the subscription would be financed entirely from cash already available to it.
The investment is being made through a newly established private special-purpose vehicle whose only asset is the OSX-1 FPSO. According to the company details carried by Offshore Energy, that entity has no significant trading record and conducts no other business. Rockhopper expects annual net holding costs of about $1.4 million for its proportional 35% participation, alongside the initial acquisition-related commitment.
Sea Lion’s first two development phases are expected to rely on a different FPSO, Aoka Mizu, with production capacity of 55,000 barrels of oil per day. OSX-1 is planned to add a further 125,000 barrels per day of capacity. Under the existing project timetable, drilling is due to start in early 2027 and Phase 1 is scheduled to deliver first oil in the first half of 2028, Offshore Energy reported.
Following the final investment decision, Sea Lion’s funding requirement through first oil stands at $1.8 billion, while the estimated requirement through project completion is $2.1 billion. The vessel investment follows an update from Navitas on contractor changes and development progress against the backdrop of Argentine sanction threats, which Offshore Energy linked to a recent speech by Argentina’s president, Javier Milei.