Ophir Ends Talks with Schlumberger over Fortuna LNG Project

Ophir Energy has ended talks with Schlumberger over participation in the Fortuna LNG project in Equatorial Guinea, after the parties hit a stumbling block on terms agreed in January.

Following this development, Ophir said in a company statement that “the project still represents a technically and financially attractive project for Ophir and its shareholders” and stated that it is continuing to progress the project without Schlumberger.

“Ophir has remained in active discussions with a number of other parties with regards to participation in and funding of the Fortuna FLNG Project. These discussions include upstream equity participation, vendor financing and pre-sales of gas,” said an Ophir spokesperson in a company release.

Ophir CEO Nick Cooper said in a company statement:

“The Fortuna project workstreams are progressing towards FID. We have been reviewing a number of options and our discussions continue with other quality counterparties that can offer an attractive source of funding. In addition, the reduction in the capex to first gas has lowered the project breakeven oil price to approximately $40 per barrel.

“We continue to work closely with Golar, the prospective offtakers and the other potential partners and remain confident that we will take the FID in 2016.”

Ophir now expects to make a final investment decision during the fourth quarter of 2016 with first gas now forecast for early 2020.