Ophir Energy's Fortuna LNG development is a step closer to reality after signing an umbrella agreement, which sets out the legal and fiscal framework for the project.
Ophir, the Republic of Equatorial Guinea, OneLNGSA and La Compañía Nacional De Petróleos De Guinea Ecuatorial (GEPetrol) signed the agreement, which paves the way for Africa’s first deepwater FLNG project.
The Fortuna FLNG project final investment deicison (FID) remains on schedule for mid-2017, with first gas expected in mid-2020 at a cost of US$2 billion.
Remaining milestones for the project are the award of construction contracts for the upstream and midstream vessel, which Ophir says are well progressed, and the completion of the project finance facility, which is also progressing, with term sheets agreed with a consortium of China-based lenders. A decision on the amount of gas to be termed will be decided in coming weeks.
The umbrella agreement reconfirms the participation rights of GEPetrol as partners for 20% of the upstream portion of the project, and for a future potential participation of up to 30% ownership of the midstream FLNG vessel by the Republic of Equatorial Guinea or a designated state company.
These participations create alignment with Equatorial Guinea's government, from upstream through to LNG marketing.
Fortuna sits in Block R, some 140km west of Bioko Island, in the southeastern Niger Delta complex. Ophir took on the license in 2006 and two years later discovered Fortuna, in 1680-1850m water depth, and 800m reservoir depth.
The Fortuna Golar LNG solution, a four-train 2.6-2.8 MTPA nameplate system, will use a converted Moss LNG carrier, the Gandria, to be owned, operated and maintained by Golar LNG. It will have an NOV external turret and mooring. Keppel Shipyard is performing the vessel conversion, with Black & Veatch as the liquefaction process supplier.
The project is expected to have a 20-year life with 17 wells in four phases.