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Ophir provides update on Fortuna FLNG

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LNG Industry,

Ophir has announced its results for 1H16, highlighting significant progress in the Fortuna floating LNG (FLNG) project. The company claims that it has made progress in maturing the project and value chain to the point where a final investment decision (FID) is ready to be made. The upstream part of the value chain is technically ready for FID and the downstream offtake portion is ready for a final group decision to be made between competing offtake offers.

Ophir claims that it has shortlisted four high quality and high credit-rated gas offtakers – all of which are significant players in the LNG market. The company claims that two world class consortia are bidding for the upstream engineering, procurement, construction, installation and commissioning (EPCIC) contract. As a result, Ophir has decreased estimated upstream costs of approximately US$1 billion at the end of 2014 to approximately US$450 million today. On a point forward basis, the company claims that these represent an upstream development cost of approximately US$1.70/boe.

Regarding the midstream part of the value chain, Ophir is continuing to look at ways to work with Golar LNG in order to monetise the resources discovered in the Fortuna field. Ophir claims that discussions are going well, and that both companies are working towards an FID being made before the end of this year.

Ophir added that the value chain, as well as the company’s understanding of costs along this value chain, is mature enough that it can estimate that Fortuna is currently the market’s lowest greenfield LNG project. As a result, the project continues to offer returns, in spite of the current low price of commodities.

Edited from press release by David Rowlands

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