London-based Ophir Energy can move forward with its Fortuna FLNG project off the coast of Equatorial Guinea without new partners, due to declining cost estimates.
Speaking to Reuters, Oliver Quinn, Ophir’s director of new business, said the capital costs are currently around US$450 million or 50 percent below the costs expected a couple of years ago.
He added that Ophir’s equity was limited at $150 million as the company did not want to overexpose the balance sheet to the project. The government of Equatorial Guinea is expected to provide $90 million.
The remaining funds would be provided by a partner, debt or a loan to the project agreed under the gas sales agreement.
In September, Ophir said the Fortuna FLNG project is “technically ready” for a final investment decision, adding that it is searching for partners to help fund the project.
However, Quinn said that a partner is not needed as the low oil and gas prices have forced service providers to lower the costs.
LNG World News Staff