Schlumberger, Ophir, Golar to develop $2-billion Fortuna FLNG project

LONDON -- Ophir Energy and OneLNGSM, a joint venture between subsidiaries of Golar LNG and Schlumberger, have signed a binding agreement to establish a joint operating company (JOC) to develop the Fortuna project, in Block R, offshore Equatorial Guinea.

OneLNG and Ophir will have 66.2% and 33.8% ownership of the JOC, respectively. The JOC will facilitate the financing, construction, development and operation of the integrated Fortuna project and, from final investment decision, will own Ophir’s share of the Block R licence and the Gandria FLNG vessel. This structure aligns investment across the value chain and provides a framework to promptly deliver a fully financed project.

The final investment decision is now expected to take place in first-half 2017, with first gas anticipated in first-half 2020. Initial offtake is expected to be 2.2-2.5 mtpa for a duration of between 15 and 20 years, which will monetize around 2.6 Tcf of the discovered resource.

The total capital expenditure expected for the integrated project to reach first gas is approximately $2 billion. 

Nick Cooper, chief executive of Ophir, said, “Formation of the Fortuna JOC provides the framework for FID and clear line of sight to first gas. This progress is due to the innovative partnering between OneLNG and Ophir, the quality of the resource base, the excellent project economics and support from the government of Equatorial Guinea.”