LONDON – Ophir Energy has finalized commercial terms for its Fortuna floating LNG (FLNG) project offshore Equatorial Guinea and is in the process of signing heads of agreement (HoAs) for LNG offtake with a group of counterparties.
All are globally established LNG buyers.
The offtake contracts provide the flexibility to deliver the gas to either the Atlantic or Pacific basin. Total requested demand under the HoAs has substantially exceeded the available offtake from the project.
Ophir expects all to be signed by the end of November. A further shortlisting process will then follow to select one, two, or three LNG buyers for signing of full sales and purchase agreements (SPAs) during 1Q 2016. This timing is in line with the planned project final investment decision in mid-2016.
Consultant ERC Equipoise has increased its estimate of the contingent resource on Ophir’s offshore block R from 2.6 tcf to 3 tcf, with an additional 0.8 tcf of low risk prospective resource included in the base case planning for Fortuna FLNG.
In addition, there is a further 0.3 tcf of contingent resources in the base case connected to compression later in field life.
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