Ophir signs agreements to sell LNG from Fortuna FLNG project

Ophir Energy has signed heads of agreements (HOAs) for liquefied natural gas (LNG) offtake from the Fortuna FLNG (floating LNG) project in Block R, offshore Equatorial Guinea with six counterparties, all of whom are established LNG buyers in European and Asian markets.

Furthermore, the management estimate of the gross capital expenditure required to first gas has been revised downward from $800 million to $600 million (i.e., from $640 million to $480 million net to Ophir’s 80% working interest) based on recent input from the ongoing upstream front-end engineering and design (FEED) work.

Ophir is selling 2.2 million tons per annum (Mtpa) of LNG offtake; however, the total demand requested under the HOAs has seen the offtake sold several times over. The HOAs are based on a variety of different pricing constructs with formulae that consist of either European gas market netbacks, oil indexation, or a combination of both, and that, in some cases, include the provision of a floor price. Offtake under several of the HOAs also incorporates a sharing of incremental diversion income earned above the base contract formula for LNG volumes that are subsequently sold into higher-value markets.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...