Ophir given Fortuna FLNG ultimatum

Ophir given Fortuna FLNG ultimatum
Illustration purposes only (Image courtesy of Ophir Energy)

London-based Ophir Energy could face a cut from the Fortuna FLNG project in Equatorial Guinea as the country’s government loses patience over project delays. 

In March, Ophir noted the completion of project financing on the Fortuna project in Equatorial Guinea has taken longer than expected, but that the company is focused on reaching the final investment decision in 2018.

Equatorial Guinea has not set an ultimatum to Ophir to present financing deals by December of the year, or otherwise face a cut from the project that may even be scrapped completely.

Speaking to Reuters, Equatorial Guinea’s minister of mines and hydrocarbons, Gabriel Obiang Lima, said the license for the offshore Block R would be given to someone else, without disclosing the name of the company.

Ophir’s license for the Block R expires in December and it might not be extended.

Minister added that in case the FLNG project is completely scrapped, it could deliver the gas produced at the Block R to an existing land-based LNG facility.

To remind, Ophir signed the Fortuna FLNG umbrella agreement in May last year, establishing the full legal and fiscal framework for the project. In August, the company signed an offtake deal, naming the Swiss trading company Gunvor as the preferred buyer for the project’s LNG volumes.

 

LNG World News Staff

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