Rockhopper Exploration has committed $44 million from its existing cash reserves to secure a 35% interest in a second floating production, storage and offloading vessel intended for the Sea Lion oil project off the Falkland Islands. Offshore Energy reported that the investment covers the UK oil and gas company’s share of the acquisition cost of FPSO OSX-1.
The vessel’s acquisition was announced in August 2026 to support faster development of Sea Lion’s Central Development Area. Navitas Petroleum operates the project in the North Falkland Basin. The previously disclosed total acquisition cost for OSX-1 was approximately $125 million, with Rockhopper’s commitment reflecting its proportional participation in that purchase, according to the report.
Rockhopper will hold its interest through a newly established private special-purpose vehicle whose only asset is OSX-1. The company said the entity had neither a material trading record nor any other business activities. Beyond the initial investment, Rockhopper expects annual net holding costs of about $1.4 million for its 35% participating interest. The subscription is to be financed entirely from cash already available to the company.
OSX-1 is the second FPSO secured for Sea Lion, while the first two development phases are expected to use Aoka Mizu. Offshore Energy put Aoka Mizu’s planned production capacity at 55,000 barrels a day and said OSX-1 would add a further 125,000 barrels a day. Under the current timetable, drilling is scheduled to start in early 2027, with Phase 1 production targeted for the first half of 2028.
Following the final investment decision, Sea Lion requires $1.8 billion in funding to reach first oil, while the estimated requirement through project completion is $2.1 billion, the outlet reported. Rockhopper’s commitment follows a Navitas update on contractor replacements and development progress amid Argentine threats of sanctions, which Offshore Energy linked to a recent speech by Argentina’s president, Javier Milei.