Oilfield services giant Schlumberger (SLB) is entering Ophir Energy (OPHRY)’s Fortune floating liquefied natural gas (LNG) project off Equatorial Guinea after agreeing a preliminary deal with the UK player for a stake in the development.
The non-binding agreement has Schlumberger receiving a 40-percent interest in the project, with a permanent deal expected in Q2 2016.
The services provider plans to reimburse 50 percent of Ophir’s past costs through a development carried interest. It is expected to cover the company’s capital expenditure on the project until the first sales of LNG.
The Fortuna project is located on block R in offshore Equatorial Guinea, about 140 km off the coast of Bioko Island on the Distal Niger Delta.
Ophir’s total production for 2015 averaged 13,000 boepd, ahead of projections due to its Bualuang and Sinphuhorm fields in Thailand producing ahead of target, the firm released in a trading update. Its capital expenditure for this year is estimated between USD 145 million-225 million.
Mercedes Eworo Milam, Director General of Hydrocarbons in the Equatorial Guinea Ministry
of Mines, Industry and Energy (MMIE), commented: “MMIE continues to lend full support to Ophir, GEPetrol and Sonagas as it progresses the Fortuna FLNG project towards FID.”