Ophir Energy, a London-listed oil and gas company, expects to make the final investment decision (FID) on its Fortuna FLNG project in Equatorial Guinea would be made in the fourth quarter of 2017.
Ophir said on Thursday in its half-year report that ‘significant’ steps were made in the first half of 2017 towards the FID of the Fortuna FLNG Project.
“Given that the remaining milestones are dependent on multiple stakeholders it has proven difficult to precisely forecast FID timing. However, with the strong progress seen in 1H 2017 and the current intensive effort from all parties, we presently still expect FID of the Fortuna project to be achieved in 4Q 2017,” said the company.
Ophir added that the only primary milestone remaining was the Fortuna project financing. Once achieved, the company will ask for shareholder approval and the formal decree from the President of Equatorial Guinea.
During the first half of 2017, the project partners signed an umbrella agreement that established the full legal and fiscal framework for the Fortuna FLNG project. Also, Gunvor Group signed a deal with Ophir as the preferred LNG buyer for the offtake from the project. According to the company, a final sale and purchase agreement for the offtake is expected to be signed ahead of the FID. A midstream EPC construction contract was awarded to Keppel and Black & Veatch back in May.
In addition, the Hilli Espiseyo FLNG vessel, Golar’s first FLNG conversion, is expected to leave the yard around the end of the third quarter or in early fourth quarter and be in the field off Cameroon ready to begin operations in November. According to the company, it is an important event in the de-risking of the Fortuna midstream FLNG solution.
In the outlook regarding the Fortuna project, Ophir said on Thursday that management’s current expectation was that investment in the project would deliver an internal rate of return (IRR) of 25-35 percent.
Offshore Energy Today Staff