The sea lion reservoir contains, according to the published resource report, 513 million barrels of oil (C2), and in the past $ 1.1 billion was invested in 11 exploration, assessment and verification drillings.
Navits You will acquire the rights in the project free of charge, with a commitment to finance part of the development costs of the project partner if the parties reach a final investment decision within the next 5 years.
Navits chairman Gideon Tadmor“Navits’ entry into the Sea Lion reservoir is a long-term, minimal-cost option that will mature into a significant asset as a development plan is formulated and a project investment decision is made.”
The Navits Petroleum Petroleum Partnership reports that it has signed a renewed agreement to acquire the rights to the Sea Lion discovery in the Falkland Islands, under which Navits will acquire and hold 65% of the project and replace Harbor Energy as the project operator, at no financial cost to Navits. After the deal, the partners in the project will be Navits (65%) and the British company Rockhopper Exploration (35%) with 35%.
The Sea Lion oil property is located about 220 km north of the Falkland Islands in the southwest Atlantic, and includes 3 licenses in which 513 million barrels of oil (C2) were discovered and verified according to the resource report. The oil property was first discovered in 2010 by Rockhoffer and in In 2012, Premier (now the Harbor Company) acquired 60% of the oil rights and was appointed as the operator of the project.
Under the new Memorandum of Understanding, with the departure of the Harbor Company from the project, Navits will hold 65% of the rights in the oil asset and will be the operator of the project in its place. In exchange for the transfer of rights, Navits will not pay any monetary consideration, but will undertake to provide a ‘pre-FID’ loan to finance the expenses of the Rockhoffer partner in the project in relation to expenses in the interim period up to the final investment decision (FID) stage.
In addition, Navits undertakes that in the event of a final investment decision in the Sea Lion project in the future, Navits will provide Rockoff with a 66% equity loan required to develop the reservoir, which will be repaid from the free cash flow from the project to Rockhopper.
It was further agreed that Navits and Rockhoffer will work to formulate a plan that will enable the development of Sea Lion in the most efficient format. In addition, it was agreed that if the partnership, as the operator of the new project, fails to bring the project for FID within 5 years from the date of completion of the binding transaction agreements, Rockhofer will be able to claim the full rights in the pool, in exchange for repaying the pre-FID loan. The partnership will later examine the possibility of introducing another partner to the project.
Chairman of Navits, Gideon Tadmor: “This transaction is another link in a series of transactions in which Navits acquires a significant oil asset on occasion with the intention of advancing it to the commercial development stage. Navits’ entry into the Sea Lion reservoir is a long-term option at minimal cost. For the development of the project. ”
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