Excelerate will be appointed as the lead in a consortium of technology providers that is expected to include Samsung Heavy Industries and Black & Veatch. Negotiations regarding a detailed Memorandum of Understanding (“MOU”) have concluded and will be signed today between the EquatoGuinean Ministry of Mines, Industry and Energy (“MMIE”), GEPetrol, Ophir and Excelerate. This MoU will fully align the parties ahead of a full FEED contract later this year.
Following the recent announcements of (i) the successful Fortuna-2 Well drill stem test and (ii) the agreement with the MMIE on the improved Block R gas fiscal terms to underpin the value of the project, this midstream consortium appointment completes the final key milestone before FEED.
The total estimated mean recoverable resources of Block R, including the discoveries and adjacent de-risked volumes, are 3.4TCF. These resources will be developed through a four phase development which will commence with the development of the Fortuna Field. Additional volumes (1.2TCF from the Silenus Complex, 0.5TCF from Tonel and 0.4TCF from other smaller discoveries) will, in turn, form the later phases of the development.
The Upstream and Midstream FEED contracts will commence in early 2015 and late 2014, respectively. FID is expected in 2016 and first gas in 2019.
Nick Cooper, CEO, commented:
“I’m delighted to announce the appointment of the Excelerate consortium as our midstream partners for the Block R FLNG Project. The recent newsflow on the EG FLNG Project demonstrates its commercial viability and moves it further up the value curve ahead of a planned farm down in 2015. The selection of Excelerate and partners follows a comprehensive evaluation process. The Excelerate consortium has deep sector expertise and a leading position in marine based LNG applications. Ophir looks forward to working with Excelerate and our partners in Equatorial Guinea to deliver Africa’s first newbuild, open seas FLNG project.”
An analyst conference call to discuss recent Equatorial Guinea newsflow will be held at 8:30am on Friday 7 November. Dial in details are as follows:
International Dial-In: +44 (0) 1452 555566
Conference ID: 32165818
Press release is available to download