Ophir brings Schlumberger on board Fortuna FLNG

London-based Ophir Energy revealed on Monday it has partnered up with Schlumberger on the Fortuna FLNG project in Equatorial Guinea. 

According to Ophir’s statement, a non-binding heads of terms agreement has been signed under which Schlumberger will receive a 40% economic interest in the Fortuna FLNG project.

Last week, Schlumberger joined forces with Golar LNG to develop gas reserves utilizing floating LNG technology.

A definitive deal is expected to be signed in the second quarter of 2016, prior to the final investment decision, which would see Schlumberger reimburse 50 percent receive a 40% economic interest in the Fortuna FLNG project. This would cover Ophir’s share of capital expenditures up until first sales of LNG, the statement reveals.

Ophir noted that it also expects to complete a shortlist of the gas off-take offers in the coming weeks.

Ophir’s CEO Nick Cooper said, “These are tough times for the upstream sector, but this transaction will free up our balance sheet and further increase our financial flexibility.” 

The company predicts its 2016 capital expenditure to be between US$175 million and US$225 million compared to approximately US$250 million in 2015.

Additionally, the company informed that Tanzania Petroleum Development Corporation has announced the location of the LNG site at Machenga Bay.

Ophir also expects Shell to assume operatorship of the project upon completion of the Shell-BG Group deal. BG Group formed a partnership with Ophir in 2010 in blocks 1, 3 and 4, offshore Tanzania.

LNG World News Staff