Schlumberger eyes Fortuna FLNG interest

  • Business & Finance

Ophir Energy, an independent oil and gas company, and Schlumberger, the world’s largest oilfield services provider, have entered into a non-binding Heads of Terms Agreement whereby Schlumberger will get a 40% economic interest in the Fortuna FLNG project, offshore Equatorial Guinea. 

Fortuna sits within the Block R licence, offshore Equatorial Guinea, which is located in the south-eastern part of the Niger Delta complex. Ophir holds an 80% operated interest in Block R and GEPetrol holds 20% interest.

According to Ophir’s statement on Monday, the duo will now work towards signing a definitive agreement, which is expected to be signed in 2Q 2016, ahead of Final Investment Decision. Under the definitive agreement, Schlumberger will reimburse 50% of Ophir’s past costs in the form of a development carried interest. This is expected to cover Ophir’s share of capital expenditures up until first sales of LNG, Ophir said.

Ophir reminded it is also presently shortlisting the gas off-take offers and expects to complete this process within the coming weeks. All workstreams are progressing in line with expectations and the project remains on track to achieve FID in mid-2016, the oil and gas company noted.

Mercedes Eworo Milam, Director General of Hydrocarbons in the Equatorial Guinea Ministry of Mines, Industry and Energy (MMIE), commented: “MMIE continues to lend full support to Ophir, GEPetrol and Sonagas as it progresses the Fortuna FLNG project towards FID.”

To remind, last week an agreement was signed between Golar and Schlumberger to jointly develop gas reserves through FLNG technology.

According to Ophir, subject to a successful FID and implementation of the partnership in the Fortuna project both Schlumberger and Golar have expressed interest to extend this partnership to include other existing or potential new Ophir assets in the future.

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