Schlumberger negotiates optional stake in Fortuna FLNG offshore Equatorial Guinea

Offshore staff

LONDONOphir Energy has signed a non-binding heads of terms agreement with Schlumberger that would give the latter a 40% interest in the Fortuna FLNG project offshore Equatorial Guinea.

The two parties will work toward signing of a definitive agreement sometime this spring, ahead of a final investment decision (FID).

Schlumberger would reimburse 50% of Ophir’s past costs in the form of a development carried interest, thereby covering Ophir’s share of capex until first LNG sales.

Presently Ophir is scrutinizing the various gas off-take offers and expects to complete this process in the next few weeks.

Last week the Fortuna FLNG vessel provider Golar and Schlumberger signed a separate agreement to jointly develop gas reserves through FLNG technology. Subject to a successful FID and implementation of the partnership in the Fortuna project, both contractors have expressed interest in extending this partnership to other Ophir assets in future.

Following elections in Tanzania late last year, Tanzania Petroleum Development Corp. (TPDC) has announced the location of the LNG site to receive gas from the country’s various deepwater fields will be at Machenga Bay: TPDC is currently securing land for the midstream facilities.

Ophir expects Shell to assume operatorship once its acquisition of BG Group goes through.

Elsewhere, Ophir has completed a new program to increase production on the Bualuang oil field offshore Thailand. This involved increasing produced water disposal capacity via a combination of drilling, workovers, and submersible pump replacement.

01/25/2016

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