Rockhopper Pledges $44 Million for Oil Project’s Second Falklands-bound FPSO

October 7, 2026 · 7 hours ago

Rockhopper has committed millions to secure a stake in a floating production, storage, and offloading (FPSO) destined for the Falkland Islands.

Rockhopper Exploration, a UK-based oil and gas exploration and production company, has earmarked $44 million from its existing cash reserves to obtain a 35% interest in a second FPSO planned to be deployed at an oil project in the North Falkland Basin, bringing the basin one step closer to unlocking its long-awaited offshore potential.

The acquisition of the FPSO OSX-1 was announced in August 2026, a move that secured the second unit for use in the accelerated development of the Central Development Area at the Navitas Petroleum-operated Sea Lion oil project.

Rockhopper has now confirmed its entrance into an agreement to acquire its 35% pro rata participating interest in this FPSO. The firm has agreed to subscribe for $44 million of ordinary shares in a newly incorporated special purpose vehicle (SPV) that owns the unit.

The company emphasizes that the subscription will be funded from its existing cash resources. The amount reflects the UK firm’s 35% share of the previously disclosed aggregate acquisition cost of the FPSO, estimated at approximately $125 million.

The European player elaborated: “The SPV is a newly incorporated private company whose sole asset is the OSX-1 FPSO, and it has no material trading history or other business activities.

“Rockhopper is expected to incur net holding costs, attributable to Rockhopper's 35 per cent pro rata participating interest, of approximately $1.4 million per annum.”

This comes shortly after Navitas shed light on Sea Lion contractor replacements and ongoing Falklands oil development progress following Argentine sanction threats, as illustrated in the recent speech delivered by Javier Milei, President of Argentina.