Ophir Energy announces that it has finalised commercial terms and is in the process of signing Heads of Agreement (“HoAs”) for LNG offtake from the Fortuna FLNG Project with a shortlisted group of counterparties, all of which are globally established LNG Buyers.
The Fortuna FLNG development will be Africa’s first deepwater independent FLNG project. The project entered FEED in July 2015 and FID is expected in mid-2016 with the first gas forecast for mid-2019. The field is expected to produce 2.2mtpa and Ophir currently has an 80% working interest.
- Fortuna-2 DST flowed gas to surface at a constrained rate of 60 MMscfd, exceeding expectations. The implied unconstrained rate was 180 MMscfd which will reduce the number of development wells required
- Gas fiscal terms agreed with the Government of Equatorial Guinea
- Golar appointed as midstream provider
- Expected plateau production rate of 330 MMscfd
- Upstream FEED to be completed in 1H 2016
- Progress various commercial and technical workstreams ahead of FID in mid-2016
- First gas expected mid-2019
expected production from the field
Ophir's current working interest.
Fortuna sits within the Block R licence, offshore Equatorial Guinea which is located in the south-eastern part of the Niger Delta complex. Ophir holds an 80% operated interest in Block R. There have been seven commercial discoveries to date in Block R, five of which were made by Ophir. There is a total of 2.6 Tcf of independently certified 2C contingent resource and another 0.8 Tcf of low risk prospective resource in Block R making a total of 3.4 Tcf (at Dec 2014) for the project planning case.
An FLNG development concept was selected because the gas discovered in Block R is biogenic and as a result is around 99% methane, with no contaminants or heavier hydrocarbons. The purity and cleanliness of the gas means that it is especially suited to FLNG as there is very little topside processing required. The FLNG concept was also selected due to the benign meta-ocean conditions and proximity to European LNG markets. In addition, the low cost of the development ensured that the project could compete with US Gulf Coast Exporters. This low cost solution is based around the conversion of a Golar owned LNG tanker into a Floating Liquefaction, Storage and Offloading vessel. Ophir expects that it will be able to deliver an economic project at an FOB price of less than $7 per mmbtu.
The project entered FEED in July 2015 and is on schedule for FID in 2016 and first gas in 2019. Ophir is working closely with the midstream partner, Golar, to meet this timeframe. Production is expected to be around 330 MMscfd with a plateau of 30 years.