Ophir Energy has announced the signature of an amendment to the Block R PSC, off Equatorial Guinea, that establishes gas fiscal terms within the PSC and a fiscal framework for the FLNG project.
Ophir said that the amendment has been agreed in Malabo and will be signed later today (November 4) by the Ministry of Mines, Industry and Energy “MMIE”, Ophir Equatorial Guinea Block R Ltd “Ophir”, and GEPetrol.
According to Ophir Energy, the agreed terms provide a robust, transparent financial framework in which Ophir (as Operator with 80% equity), GEPetrol (as 20% equity partner) and the Government of Equatorial Guinea, can work together to develop the Fortuna Floating Liquified Natural Gas (“FLNG”) project.
As previously disclosed, 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 start with the development of the Fortuna Field.
Upstream FEED in 2015
The next milestone in the Block R FLNG development will be the appointment of the midstream partners, this is expected to occur in November, and the beginning of Upstream FEED is planned in early 2015. FID is expected in 2016 and first gas in 2019.
Nick Cooper, CEO, commented:
“Ophir is very pleased to announce the successful conclusion of the gas terms discussions with the Government of Equatorial Guinea and looks forward to working with the Government to deliver Africa’s first FLNG project.
Agreeing mutually beneficial financial terms de-risks the project and will help facilitate external investment. This is positive not only for the project viability and for all parties involved with the Block R FLNG project.”