Ophir drives Fortuna FLNG closer to FID

Ophir Energy, a London-listed oil and gas company, expects to take the Final Investment Decision (FID) for the Fortuna FLNG project in Equatorial Guinea by mid-2017. 

The company is working on developing the gas reserves found in the Block R, offshore Equatorial Guinea, through a floating LNG (FLNG) solution. The project’s FID was previously expected to be taken by the end of last year.

In November 2016, Ophir signed a shareholders’ agreement with OneLNG – a joint venture owned by Golar LNG and Schlumberger to help monetize stranded gas assets – to form a new Joint Venture (JV) that will finance and develop the Fortuna project.

In its final results for 2016 announcement on Thursday, the company said the establishment of the JV means it can now move the Fortuna FLNG project towards FID in mid-2017.

Regarding the company’s plans for the project in 2017, Nick Cooper, Chief Executive Officer, said: “We are looking for 2017 to deliver material milestones. A green light for Fortuna, expected in mid-2017, will unlock 345 MMboe for monetisation. Subject to the volume of gas we choose to term up, this could treble our Group 2P reserves in the process.”

The company added that the umbrella agreement between the Fortuna JV and the Government of Equatorial Guinea is expected to be signed during 1Q 2017. This defines the legal and fiscal framework for the project.

Furthermore, a term sheet has been signed for the provision of the debt facility with a consortium of Chinese banks. The company said it has now moved to the documentation phase and expects to close the facility during 2Q 2017.

Offshore Energy Today Staff