Ophir signs PSC for Equatorial Guinea block

Ophir Energy signed an amendment to the Block R production-sharing contract (PSC) that establishes gas fiscal terms within the PSC and a fiscal framework for the Fortuna floating liquefied natural gas (FLNG) project.

The amendment has been agreed in Malabo and will be signed later today by the Ministry of Mines, Industry and Energy, Ophir Equatorial Guinea Block R Ltd., and GEPetrol.

Block R is located in the southeastern part of the Niger Delta complex close to numerous significant oil and gas discoveries in the Nigerian sector. The Block lies in water depths of 600-1950m.The terms of agreement provide a robust, transparent financial framework in which Ophir, as Operator with 80% equity, GEPetrol (20%) and the Government of Equatorial Guinea, can work together to develop the Fortuna FLNG project.

Ophir says the total estimated mean recoverable resources of Block R, including the discoveries and adjacent de-risked volumes, are 3.4Tcf. These resources will be developed through a four-phase development of the assets that will commence with the development of the Fortuna Field.

The next milestone in the Block R FLNG development will be the appointment of the midstream partners, which is expected to occur in this month, and the beginning of upstream FEED is planned in early 2015. Final investment decision is expected in 2016 and first gas in 2019.

Map from Ophir.