Israeli energy exploration and production partnership Navitas Petroleum (TASE: NVPT) has made a final investment decision (FID) on the Sea Lion oil field off the coast of the Falkland Islands, a British Overseas Territory in the south Atlantic Ocean. The revenue from the oil field will be worth an estimated £4 million for the Falkland Islands, worth £100 million to each of its 3,500 residents. The Argentinean government, which claims ownership of the islands and even invaded them in 1982 but withdrew after losing a war with the UK, has failed in its efforts to halt the project.
Navitas says this is the fourth largest undeveloped oil discovery in the world. 65% of it belongs to Navitas, which rose 2% in trading on the Tel Aviv Stock Exchange (TASE) following the statement. Yesterday, IBI analysts gave Navitas stock a good rating, predicting an upside of 29%. Now, it is starting to realize some of its promise.
The Sea Lion oil field is particularly large, containing an estimated 819 million barrels of oil. The cost of developing Phase I is $1.8 billion. Navitas share will be $1.17 billion, with the rest paid by its partners, mainly UK company Rockhopper Exploration. The project is expected to start production in the first quarter of 2028.
According to Navitas, "To finance the development of Phase A of the project, project financing agreements have been signed between the Sea Lion partners and a foreign bank and other banks and financial institutions. According to the financing agreement, Navitas' project company (NPDP) will be provided with loans worth roughly $650 million for the development of Phase A of the project."
Argentina government's attempt to delay the project
In September, Argentina’s government issued an unusual statement protesting the illegality of the development of the Sea Lion oil field, which led to a temporary decline in Navitas stock. But in practice, Argentina has no practical way to halt the project, which is internationally recognized as a British Overseas Territory despite Argentina’s claims. The islands were first settled by the French in the 18th century, but the settlement was abandoned until another attempt by the British in 1833, and many today’s 3,500 inhabitants are their descendants. Most of the island’s residents currently make their living from raising sheep.
Navitas chairman Gideon Tadmor said, "The FID decision on the Sea Lion project is further proof of Navitas’ creativity, determination and ability to turn undeveloped discoveries into extraordinary successes. Navitas is now leading the Sea Lion project into a development that is expected to generate great value for investors and bring great news of unprecedented growth and economic prosperity to the people of the Falklands."
Published by Globes, Israel business news - en.globes.co.il - on December 10, 2025.
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