Navitas Petroleum signs deal to acquire second FPSO vessel for Falkland Islands Sea Lion oil project expansion

Navitas Petroleum LP signed a deal Monday to acquire the vessel OSX1 for approximately $125 million. That adds a second floating production, storage and offloading platform to its Sea Lion oil development in the Falkland Islands. The Israeli company expects to close the transaction in September 2026.

The purchase is tied to a new phase of Sea Lion called the Central Development Area—a project that would eventually add up to 125,000 barrels per day of production capacity, with a total development budget estimated at around $3 billion.

Navitas signs deal to buy OSX1 vessel for $125 million

Navitas disclosed the OSX1 acquisition in a quarterly filing to the Tel Aviv Stock Exchange. The deal is straightforward: roughly $125 million for the vessel itself, with retrofit costs sitting on top of that.

Financing for that upgrade is still being worked out, with a final investment decision targeted for the first half of 2028 and first CDA1 production aimed at 2030.

Those retrofit costs are substantial. Out of the CDA1’s estimated $3 billion total development budget, approximately $1.15 billion is earmarked for purchasing, upgrading, and adapting the second FPSO. The $125 million purchase price is just the entry point. The bigger spend comes later—and Navitas says it’ll spend the coming year exploring financing options for the FPSO2 upgrade. No specific structure has been announced.

CDA project design and why a second FPSO is needed

Sea Lion was never designed as a single-phase project. The North Development Area covers the first wave of drilling, but the reservoir extends further, and that’s where the Central Development Area comes in.

The CDA unfolds in two phases: CDA1 involves 20 wells, followed by CDA2 with 18 additional wells. Together, the OSX1 FPSO would support up to approximately 125,000 barrels per day of incremental production capacity across CDA and subsequent projects. That’s a meaningful step up from the Aoka Mizu—the NDA’s FPSO—which handles approximately 55,000 barrels per day.

Timeline: CDA approval, FID, and production start targets

Navitas has laid out a clear milestone sequence for the CDA. The company plans to submit the development plan to the Falkland Islands government and reach a Final Investment Decision during the first half of 2028, with first production from CDA1 targeted by 2030.

That schedule trails the NDA timeline. NDA1, sanctioned in December 2025 with an $1.8 billion budget, is expected onstream in March 2028. NDA2 will add 12 more wells after that, and NDA3—planned for later years—contributes another 16. Each phase builds on the infrastructure and operational experience of the one before it, with Navitas running multiple overlapping development programs simultaneously.

Status of the first FPSO and current construction activity

The NDA project is already deep into execution. The Aoka Mizu—previously serving a North Sea project—has disconnected from that prior assignment and is en route to a shipyard in Southeast Asia, expected to arrive in September 2026 for upgrade and adaptation work.

On the ground in the Falkland Islands, the focus is preparation, not production. Workers are building pier infrastructure, shore base facilities, and housing for project employees. Drilling isn’t scheduled until early 2027. Production of long-lead equipment—flexible flow pipes, wellheads, and subsea Christmas Trees—is also continuing on schedule. These are components that require extended manufacturing timelines and can’t be ordered at the last minute.

Partnership structure, adjacent license acquisition, and exploration upside

Navitas doesn’t operate Sea Lion alone. UK-based Rockhopper Exploration PLC holds the remaining interest, with Navitas controlling a 65% operating stake throughout the project’s development.

Navitas is also moving to expand its position nearby. The company has agreed to acquire a 65% operating interest in an adjacent license, PL001, from Canada’s JHI Associates. Any discovery there would be tied back into existing Sea Lion infrastructure—a capital-efficient approach that avoids building standalone facilities.

The exploration upside is notable. PL001 carries prospective resources of up to 640 MMboe in the 2U category on a 100% basis, while Sea Lion licenses hold an additional 100 MMboe under the same classification. Navitas is also considering deepening one development well to test the Gwendoline prospect, which carries roughly 60 MMboe of prospective resources. Navitas ended Q2 2026 with $360.76 million in cash and cash equivalents and a leverage ratio of 1.3.

FPSO is heading to Southeast Asia for retrofitting

Here’s where things stand. Navitas has signed a deal to acquire the OSX1 vessel for approximately $125 million, with closing expected in September 2026. Once retrofitted, the vessel will serve the CDA—Sea Lion’s second major development project.

CDA1 carries a total estimated budget of around $3 billion, with $1.15 billion tied to the FPSO2 alone. Financing for that upgrade is still being worked out, with a final investment decision targeted for the first half of 2028 and first CDA1 production aimed at 2030. Meanwhile, NDA1 remains on track for a March 2028 start—the first FPSO is heading to Southeast Asia for retrofitting, and ground-level construction in the Falklands is actively underway.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.