Norwegian Firm Secures FEED Contract for Aoka Mizu Redeployment to Falklands
Norwegian engineering specialist Aragon has been awarded a front-end engineering and design (FEED) contract by Bluewater Energy Services to redeploy the Aoka Mizu FPSO, which is currently operating in the UK North Sea.
The vessel, which is currently producing on the Lancaster oilfield, is being prepared for transfer to the Sea Lion oil project in the Falkland Islands. Israeli operator Navitas Petroleum is leading the project, which sees the Aoka Mizu as a key component in unlocking the region’s offshore potential.
This development marks a significant milestone toward the advancement of Sea Lion, one of the most promising undeveloped oil fields in the South Atlantic.
Bluewater’s Aoka Mizu FPSOPhoto: BLUEWATER
Sea Lion Project to Deliver Over 120,000 BPD in Phased Development
The Sea Lion project—the Falkland Islands’ first offshore oil development—is being executed in three phases. Phases one and two will leverage the redeployed Aoka Mizu FPSO, with peak production expected to reach 55,000 barrels of oil per day (BPD). Once all phases are complete, total production capacity is projected to exceed 120,000 BPD, underscoring the project’s scalable design and alignment with long-term energy efficiency and resource optimisation trends.
An interview conducted earlier in the year, please use for research purposes only
The Strategic Importance of Being Fully Funded
One of the key takeaways from the conversation with Share Talk, Harry Baker, Borders and Southern CEO is the critical role that adequate funding plays in the company’s ability to advance its projects. The exploration and development landscape is highly competitive, and having the financial muscle to negotiate favourable terms is a significant advantage.
Baker emphasises that being fully funded until the end of 2026 means Borders and Southern can confidently approach industry partners and investors. This funding strategy is not just about survival but about positioning the company to make the right strategic decisions. As Baker puts it, they want to “look the industry in the eye” during negotiations and demonstrate that they are prepared to see the project through to its full potential.
This approach reflects the company’s confidence in its asset and the broader story of the Falkland Islands’ oil potential. Borders and Southern holds 100% ownership of its license, which further strengthens its negotiating position. The company is not just looking for quick wins but aims to secure partnerships that will enable the development of a significant and valuable oil project.
The Falkland Islands: A Unique Opportunity
Baker highlighted that the current landscape for oil exploration in the Falkland Islands is markedly different from past drilling campaigns. Previously, there were multiple companies vying for attention in the region, but now the focus has narrowed significantly. With only Borders & Southern and Rockhopper remaining as the primary players, there is a sense of urgency and opportunity as the industry seeks to tap into the rich resources of the Falkland Basin.
Strategic Positioning in a Competitive Market
The CEO articulated the importance of Borders & Southern’s strategic positioning. With a focus on delivering results, the company is keenly aware of the competitive landscape and the potential for lucrative partnerships. Baker pointed out that the company boasts a world-class asset, with a near-term development story that includes a significant amount of recoverable oil. This positions them favorably as they engage with potential farm-out partners.
Creating Competitive Tension
To facilitate the right deals, Borders & Southern is working with farm-out advisers to create a competitive environment. This competitive tension is vital in ensuring that the company can secure the best possible arrangements for its assets. Baker expressed optimism about the growing interest in their projects, stating that the congregation of companies interested in their story is widening.
Future Outlook: What Lies Ahead for Borders & Southern
Looking ahead, Baker conveyed a sense of excitement about the future of Borders & Southern. The company has a dedicated team working tirelessly to deliver value to its shareholders. Baker acknowledged the loyalty of long-term shareholders and expressed gratitude for their support as the company embarks on new ventures.
Conclusion: A Bright Future for Borders and Southern
Borders and Southern Petroleum PLC stands at an exciting juncture. With a world-class discovery offshore the Falkland Islands, a strengthened financial position, and growing market interest, the company is well-positioned to advance its projects and deliver value to shareholders.
Harry Baker’s insights reveal a company that is both confident and strategic, focused on long-term success rather than short-term gains. The fundraising campaign is a key enabler, providing the runway to negotiate the right deals and move the project forward with the right partners.
The broader industry trends, including a renewed focus on securing oil projects amid global energy uncertainties, create a favourable backdrop for Borders and Southern’s ambitions. As the company continues to engage with potential partners and build on its strong asset base, the coming years promise to be transformative.
For investors and industry observers, Borders and Southern is a story worth watching—a company with a compelling asset, a clear strategy, and the determination to capitalise on one of the most promising oil exploration regions in the world.
For more updates and detailed insights on Borders and Southern and other market news, visit Share Talk.
