OREANDA-NEWS. First oil from the Sea Lion discovery, the only commercially viable find off the Falkland islands (Islas Malvinas), has been put back by a year to 2020 although the forecast for peak production has been increased by around 40pc.

Now-complete preliminary work at Sea Lion has resulted in the projection for peak field production increasing to 85,000 b/d from around 60,000 b/d, UK-listed upstream firm Rockhopper Exploration said. Field life has been increased to 20 years from 15 years.

The target dates for a final investment decision and first oil have both been moved back by a year, to 2017 and 2020 respectively. The estimate of pre-first oil capital expenditure is $1.8bn, but further reductions are expected given the current low-price environment, Rockhopper said.

Rockhopper has a 40pc stake in Sea Lion, while the field's operator, UK-listed Premier Oil, holds the remainder. Rockhopper is in the process of merging with Falklands Oil and Gas — the two companies hope the deal will give them greater leverage in any potential farm-out of Sea Lion.

UK sovereignty over the Falkland islands and surrounding waters is contested by Argentina.