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Ophir to sell 40% stake in Fortuna FLNG project offshore Guinea

EBR Staff Writer Published 26 January 2016

Oil and gas explorer Ophir Energy has signed a non-binding heads of terms agreement to divest 40% interest in the Fortuna floating liquefied natural gas (FLNG) project, offshore Equatorial Guinea, to the engineering group Schlumberger, for undisclosed amount.

The agreement, which is subject to due diligence, definitive documentation and Government approval, will enable the two firms to work towards signing a definitive agreement.

The definitive agreement is expected to be signed in the second quarter of 2016.

As per the agreement, Schlumberger will compensate 50% of Ophir's past costs in the form of a development carried interest.

Upon completion of the deal, Ophir Energy will have 40% interest in FBLG project in the Block R. Additionally, GEPetrol and Schlumberger will own 20% and 40% interests respectively.

Ophir CEO Nick Cooper said: "Innovative partnering in the upstream is increasingly important to deliver world class projects that can create value throughout the cycle.

"Ophir's cost to first gas is fully funded by this transaction, and we can now evaluate the other funding and offtake proposals that we have received to select at FID the combination that creates most value for shareholders.

The Fortuna floating liquefied natural gas (FLNG) project represents the initial phase of the planned four-phased development of the fields discovered within Block R, offshore Equatorial Guinea.

The FLNG project includes the development of the Fortuna field using a floating liquefaction storage and offloading (FLSO) vessel.

Recently, Schlumberger signed an agreement with Golar to jointly develop gas reserves through FLNG technology. The firms also agreed to extend the partnership to include other existing or potential new assets of Ophir in the future.