Fortuna Financing Talks Ongoing: Ophir

Funding talks regarding the Fortuna floating liquefaction (FLNG) project offshore Equatorial Guinea “are continuing”, operator UK-based Ophir Energy said in a trading update January 16.

Ophir’s capital and investment spending in 2017 was $104mn – lower than its guidance of $160mn – “predominantly due to the deferral of the start of investment into the Fortuna FLNG project to 2018.” Two months ago the company deferred its target date for a final investment decision in the project to 1Q 2018, having already several times rolled the FID target for this $2bn, 2.5-2.8mn mt/yr project. It has yet to fill the gap left when the Chinese banks, who had been lined up to cover a chunk of the costs, withdrew for reasons that Ophir has not supplied to NGW.

CEO Nick Cooper insisted that Ophir “ended 2017 in a strong financial position with increased gross liquidity and considerable discretionary capital available for investment.”

He said Ophir’s Asia business is delivering “solid, profitable growth.” Daily production from the Bualuang (oil offshore Thailand) and Kerendan (gas offshore Indonesia) fields was broadly in line with the guidance provided in mid-2017 and averaged 11,700 barrels of oil equivalent (boe)/day. Production in 2018 is expected to be about 11,500 boe/d.

Capital expenditure in 2018 of some $150mn is expected – of which 70% will go on production and development chiefly on Bualuang phase IV ($30mn) and Fortuna ($65 mn). Ophir’s full year results are on March 7.