Ophir establishes fiscal framework for FLNG project

Ophir Energy has signed an amendment to the Block R production sharing contract (PSC) in Equatorial Guinea that establishes gas fiscal terms within the PSC and a fiscal framework for the FLNG project.

The amendment has been agreed in Malabo and will be signed by the Ministry of Mines, Industry and Energy (MMIE), Ophir Equatorial Guinea Block R Ltd and GEPetrol.

The agreed terms provide a financial framework in which Ophir (as Operator with 80% equity), GEPetrol (as 20% equity partner) and the government of Equatorial Guinea, can work together to develop the Fortuna Floating Liquefied Natural Gas (FLNG) project.

Field development

The total estimated mean recoverable resources of Block R, including the discoveries and adjacent de-risked volumes, are 3.4 trillion ft³. These resources will be developed through a four-phase development of the assets that will commence with the development of the Fortuna Field.

The next milestone in the Block R FLNG development will be the appointment of the midstream partners, which is expected to take place in November, and the commencement of upstream FEED is planned for early 2015. FID is expected in 2016 and first gas in 2019.

Comments

Nick Cooper, CEO, commented: "Ophir is very pleased to announce the successful conclusion of the gas terms discussions with the Government of Equatorial Guinea and looks forward to working with the Government to deliver Africa’s first FLNG project.

“Agreeing mutually beneficial financial terms de-risks the project and will help facilitate external investment. This is positive not only for the project viability and for all parties involved with the Block R FLNG project.”

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/floating-lng/04112014/ophir-establishes-flng-fiscal-framework-1722/