Sea Lion Field
| Sea Lion Field | |
|---|---|
  Oil field location off the coast of South America | |
| Country | Falkland Islands |
| Region | South Atlantic |
| Location | 220 kilometres (140 mi) north of East Falkland |
| Block | 14/10 |
| Offshore/onshore | Offshore |
| Coordinates | 49°15′56″S 59°015′18″W / 49.26556°S 59.25500°W[1] |
| Operator | Rockhopper Exploration |
| Field history | |
| Discovery | 2010 |
Sea Lion Field is a prospective oil field in the South Atlantic Ocean, some 220 kilometres (140 mi) north of the Falkland Islands. The field is estimated to have a reserve of nearly 800 million barrels of oil, which makes it larger than any North Sea oil projects. The development of the field has divided opinion, with the British Government stating that it should not go ahead as they have cancelled all new oil and gas licences, however, the Falkland Islands Government state that this is a matter for them as a devolved entity, and not part of United Kingdom law. The project is expected to generate £4 billion in income for the Falkland Islands.
History
[edit]The field was discovered in 2010 in water depth up to 450 metres (1,480 ft), and an initial estimated reserve of 500 million barrels of oil.[2][3][4] The Falklands Basin has been drilled by Shell and Amerada Hess, but they did not discover any oil reserves.[5] The initial drilling phase is expected to produce up to 55,000 barrels of oil per day (bopd), expected to ramp up to 80,000 bopd when the project is in full operation.[6] Estimates for the project predict that the field could yield 400 million barrels of oil over its lifetime, with one oil commentator stating that "I can't remember the last time that amount was discovered in the UK North Sea."[7]
The project is expected to last for 35 years and generate around £4 billion in revenue for the Falkland Islands, (which has a population of just under 3,700), which equates to about £1 million per islander.[8] Whilst the project is expected to be controversial from objections by neighbouring South American countries, the low tax threshold compared with the Great Britain's North Sea oil and gas tax, is favourable.[9] To stimulate investment, Rockhopper sold a 60% stake in the project to Premier Oil in return for a $1 billion investment.[10] By 2025 the lead company involved was Navitas Petroleum who have a 65% stake, with Rockhopper Exploration holding the remaining 35%.[11]
A consultation of the project in summer 2024, seems to have acquired support from the islanders themselves.[12]
Opinions
[edit]Charles Moore, writing in the Daily Telegraph, argues that Britain should support its overseas territory in this matter as it does not have any strategic reserves of oil. In the future, Great Britain will be required to only source their oil from "bad places", but the Falkland Islands are a key ally, and a friendly source which Great Britain could rely on.[13]
Falklands Conservation were critical of the project stating that "We believe that there is significant corner-cutting in both the gathering of evidence and in the proposed commitments to address environmental impacts. In particular, it fails to provide a firm commitment to offsetting all carbon emissions – the millions of tonnes produced during the development and the more than 100 million tonnes from burning of Falklands oil. Regrettably, the EIS and proposed development is inconsistent with best practice standards, global climate targets and non-polluting developments."[14]
A spokesperson for the UK Government stated that “As the Foreign Secretary set out in his speech on the climate crisis last week [September 2024], we are resetting the UK’s approach to climate and nature by rapidly delivering new, more efficient ways to reduce emissions. Since 2001, the UK has ceased financial support for the fossil fuel energy sector, including in its overseas territories. The natural resources of all UK Overseas Territories belong to the individual territories. Exploration of natural resources on the Falkland Islands is a matter for the Falkland Islands.”[8]
In response, the Falkland Islands Government said “We completely appreciate the UK’s stance on climate change and understand their position on prohibiting any new hydrocarbon licensing within the UKCS, while existing licences are honoured. The matter of development of the natural resources of the Falkland Islands is a devolved matter and is for the people of the Falkland Islands to decide."[8]
After the discovery of the oil field was announced, the foreign minister of Argentine (Jorge Taiana) declared that "..British actions in the region were illegal and unilateral." He also said that his country would take all "lawful steps to impede British oil exploration and production" in the region.[15]
References
[edit]- ^ EISSLF 2024, p. 138.
- ^ "Sea Lion Oil Field, Falkland Islands". NS Energy. 10 November 2023. Retrieved 28 September 2024.
- ^ Mills, Robin (14 June 2022). "Despite the conspiracy theorists, the Falklands War wasn't all about oil". The National News. Vol. 15, no. 51. p. 16. OCLC 922830637.
- ^ "Falklands oil firm Rockhopper claims discovery". BBC News. 6 May 2010. Retrieved 6 July 2025.
- ^ "The Sea Lion Oil Field Project, Falkland Islands". Offshore Technology. 26 August 2010. Retrieved 1 July 2025.
- ^ Čavčić, Melisa (8 July 2024). "Sea lion ready to roar as 'next big thing' once Falkland Islands gives the all-clear". Offshore Energy. Retrieved 28 September 2024.
- ^ Kavanagh, Michael (20 March 2015). "Explorers in $400 million Falklands drilling push". The Financial Times. No. 38, 807. p. 23.
- ^ a b c Leake, Jonathan (28 September 2024). "Falklands risks row with Britain over new oil field". The Daily Telegraph. No. 52, 684. p. 35. ISSN 0307-1235.
- ^ World political yearbook. 2016. Hackensack, New Jersey: Salem Press. 2015. p. 228. ISBN 9781619259522.
- ^ Webb, Tim (23 August 2013). "Costs delay production on first Falklands oil find". The Times. No. 70971. p. 48. ISSN 0140-0460.
- ^ Čavčić, Melisa (30 May 2025). "Sea Lion runs into setback as financing delays Falkland Islands' $1.4B oil project". Offshore Energy. Retrieved 1 July 2025.
- ^ Pearcey, Ed (30 September 2024). "UK can't stop Falkland Islands extracting millions of barrels of oil". Offshore Technology. Retrieved 6 July 2025.
- ^ Moore, Charles (12 December 2023). "COP promises are killing the Falklands oil bonanza". The Daily Telegraph. No. 52, 345. p. 17. ISSN 0307-1235.
- ^ "Initial views on Sea Lion Environmental Impact Statement (EIS)" (PDF). falklandsconservation.com. July 2024. p. 2. Retrieved 1 July 2025.
- ^ McGarvey, Declan; Pagnamenta, Robin (8 May 2010). "Discovery in disputed waters puts Argentina back on the defensive". The Times. No. 69942. p. 45. ISSN 0140-0460.
Sources
[edit]- Environmental impact statement the Sea Lion Field Northern Development area, phase 1 & 2 volume I: chapters 1 to 7 (PDF). navitaspet.com (Report). Navitas Petroleum. July 2024. Retrieved 28 September 2024.