The UK’s Rockhopper Exploration has made clear it is pressing on with its Falklands oil project by announcing a deal to farm out some of the work to Premier Oil.
Premier will pay $1billion (£647m) for a 60% stake in Rockhopper’s North Falkland Basin licences and take on a key role as operator at the Sea Lion oil field, bringing it to production. Earlier this year the firm completed a “highly successful” test at 10 wells in the SeaLion field.
Sam Moody, Chief Executive of Rockhopper said: “I am delighted that we have been able to secure such a high quality partner for our work in moving the Sea Lion development forward… It helps crystallise the value of our discoveries in the North Falkland Basin area centred on the Sea Lion field, as well as providing the funds to examine further the remaining potential of our acreage in the region.”
Rockhopper’s activity in the Falklands has attracted some controversy in the past, as British involvement in the region has been subject to disputes between the British and Argentinian Governments, which disagree over its sovereignty.