Rockhopper Exploration has agreed to invest $44 million in a 35% interest in the OSX-1 floating production, storage and offloading (FPSO) vessel, which is earmarked for the next stage of the Sea Lion oil development in the North Falkland Basin.
Under a subscription agreement announced on 7 October 2026, Rockhopper will acquire ordinary shares in a newly established special purpose vehicle (SPV) that owns the FPSO. The investment will be financed through the company’s existing cash resources.
The commitment corresponds to Rockhopper’s share of the vessel’s estimated $125 million acquisition cost, excluding anticipated upgrade expenditure. The SPV holds OSX-1 as its only asset, with Rockhopper expecting net holding costs of approximately $1.4 million annually for its 35% interest.
The vessel is intended for the Central Development Area (CDA) of Sea Lion, where operator Navitas Petroleum is pursuing an accelerated development programme alongside the initial Northern Development Area (NDA) project.
Navitas exercised an option to acquire OSX-1 in August 2026. The operator estimated that deploying the additional FPSO could expand Sea Lion’s oil production capacity by approximately 125,000 barrels per day, equivalent to 43,750 barrels per day attributable to Rockhopper’s 35% project interest.
The proposed CDA development involves 38 wells across two stages, comprising 20 wells in Phase 1 and 18 wells in Phase 2.
Navitas intends to submit the CDA development plan to the Falkland Islands Government in 2027 and reach a final investment decision during the first half of 2028. First oil from CDA Phase 1 is targeted by the end of 2030.
Meanwhile, NDA Phase 1 remains scheduled to begin production in the first quarter of 2028, with development drilling expected to start in early 2027.
Preparatory work for the initial phase includes shore base and quay infrastructure, accommodation facilities and the manufacture of subsea equipment, including flexible flowlines, wellheads and subsea Christmas trees.
The Aoka Mizu FPSO is designated for NDA Phase 1, while OSX-1 is planned for the subsequent CDA development.
Rockhopper holds a 35% working interest in Sea Lion, with Navitas operating the project through its 65% interest.
