Golar-Schlumberger deal unaffected by Fortuna talks breakdown

LNG giant Golar LNG and oilfield services behemoth Schlumberger have reassured the market that today’s break-up in talks between Schlumberger and Ophir Energy over Fortuna FLNG deal, will not affect the framework agreement which has been signed between Golar and Schlumberger.

To remind, oil and gas exploration firm Ophir Energy has terminated discussions with Schlumberger regarding the latter’s participation in Fortuna floating LNG project, offshore Equatorial Guinea. The duo in January entered into a non-binding Heads of Terms Agreement whereby Schlumberger would get a 40% economic interest in the Fortuna FLNG project.

Ophir today also revealed that the final investment decision for the Fortuna FLNG development would be postponed for the fourth quarter of 2016, and won’t be made in mid-2016 as previously reported. First gas can now be expected in early 2020.

Schlumberger-Golar pact firm

In a subsequent joint statement Schlumberger and Golar said that “that Schlumberger’s withdrawal from the Fortuna/Ophir development will not in any way influence the framework agreement which has been signed between Golar and Schlumberger.”

“The target of this framework agreement is to develop integrated solutions for stranded gas assets. Significant efforts have been put into this over the last months and the results have confirmed to both parties the commercial attractiveness and the technical viability of the FLNG concept as a solution for rapid modernisation of stranded gas. The partnership is currently exploring several specific opportunities,” the companies said.

The joint statement further revealed that Golar would independently continue to work with Ophir with the target to reach an FID for the Fortuna development this year.

Offshore Energy Today Staff