Equatoguinean 2019 Plan Omits Fortuna FLNG

Equatorial Guinea expects $2.4bn of offshore upstream investment by investors in 2019, according to a statement issued by its public relations agency that makes no mention of the Fortuna floating LNG project.

A total of 11 new oil and gas wells are to be drilled in 2019 on prospects including those held by US firms ExxonMobil, Kosmos, Marathon Oil and Noble Energy, said the statement issued December 11 by agency, APO Group, on behalf of the Equatoguinean oil and gas ministry. It also said more exploration blocks will be offered next year in the country’s 'EG Ronda 2019'.

"As the oil sector recovers, we are better able to diversify the overall economy. We have already moved forward with key projects in the downstream gas sector, including our regional LNG2Africa initiatives and the [proposed] creation of a Gas Megahub for gas processing and exports," said minister Gabriel Mbaga Obiang Lima in the statement.

However, it omitted to mention the Ophir-led $2bn Fortuna FLNG project, which has been pending a final investment decision (FID) since mid-2016 but failed to secure project financing. Obiang told reporters in London May 10 that, unless the FID is taken by end-2018, Ophir could lose operatorship to another company or the project could be scrapped. Ophir’s long-standing CEO Nick Cooper resigned a week later on May 18, with an interim CEO (Alan Booth) being in place since then.

Ophir said September this year that it would seek a buyer or partner for all or parts of its LNG assets (Fortuna, and a 20% stake in Shell-operated gas reserves offshore Tanzania) "to unlock their potential value," but has not updated the market since about the sale. Ophir’s spokesperson told NGW December 11 there is no update available at this stage on the sale process.