Ophir Energy in Equatorial Guinea FLNG Talks

Ophir Energy has signed a non-binding Letter of Intent with Petrofac to provide services as operator of the proposed gas development in Equatorial Guinea up to the Final Investment Decision, the company said in a statement on Thursday.

These services are expected to include, amongst other activities, preparing and issuing the Field Development Plan for the project and co-ordination of the interface  between the upstream and midstream elements of the development. The provision of services is conditional on a binding agreement being reached between Ophir and Petrofac.

Progress on Midstream Floating LNG solution

In order to finalise the preferred midstream solution for the proposed gas development in Equatorial Guinea, Ophir has held discussions with a number of Floating LNG vessel providers. The company has received several proposals, a number of which have now been shortlisted for further assessment with non-binding Letters of Intent signed today in Singapore with the counterparties involved. The Ministry of Mines, Industry and Energy and Ophir are reviewing the competing proposals and are planning to execute a Memorandum of Understanding with the preferred FLNG vessel provider on completion of this process.

Nick Cooper, CEO, commented:

“The Company is making considerable progress in commercialising the gas resource we have proved up to date in Equatorial Guinea. The proposed FLNG project has received strong support from the Government and we look forward to communicating to the market further progress through the year as the project gathers momentum.”

Press Release, February 20, 2014