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Golar-Schlumberger Tie-Up Unaffected by Fortuna Decision

April 29, 2016

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 targeting FLNG development projects, the two companies said in a statement.

Namely, oil and gas explorer Ophir Energy Plc said that it had ended talks with Schlumberger NV over the latter’s participation in Ophir’s Fortuna project in Equatorial Guinea, which is expected to be Africa’s first deepwater independent FLNG project.

Schlumberger and Ophir inked a non-binding Heads of Terms Agreement in January 2016 for Schlumberger’s upstream participation in the project, however, the two parties “have been unable to complete the transaction on the terms agreed” and as such, “discussions between the parties have terminated”, Ophir said.

Ophir added that it has remained in active discussions with a number of other parties with regards to participation in and funding of the Fortuna FLNG Project.

“We continue to work closely with Golar, the prospective offtakers and the other potential partners and remain confident that we will take the FID in 2016,” Nick Cooper, Chief Executive Officer of Ophir, commented.

Under the Memorandum between Golar and Schlumberger the two companies are to provide jointly market gas monetization solutions to owners, investors and governments.

As a result, Golar would contribute the floating LNG assets and technology while Schlumberger, via its special project management division, would provide upstream development knowledge, resources and capital.

“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 statement reads.