Fortuna FLNG Offtaker Shortlist Unveiled

Equatorial Guinea's ministry of mines and hydrocarbons said June 5 in Cape Town that it has shortlisted three offtakers for the Fortuna floating liquefaction (FLNG) project, which is being developed by Ophir Energy and OneLNG.

The government is in discussions with Shell, Gunvor and Vitol to sell the output when Fortuna goes online in 2020, said the organisers of the Africa Oil & Power conference in Cape Town in a statement, quoting the EG government. Reserves of 2.6 trillion ft³ could support a train of 2.5mn mt/yr but more gas could be found. Ophir has at different times given a low value of 2.2mn mt/yr and a high value of 2.8mn mt/yr.

Selection of the offtaker is expected to be made before the project reaches final investment decision in 2017, said minister Gabriel Mbaga Obiang Lima during a press conference at the event. 

Ophir CEO Nick Cooper said a month ago in Amsterdam that a decision on Fortuna's offtaker was imminent: "Talks are at a critical stage."

Fortuna FLNG illustration (Graphic credit: Ophir Energy)

Shell took over as principal offtaker, with 3.4mn mt/yr, of the separate 3.7mn mt/yr Equatorial Guinea LNG onshore plant – which has been producing since 2007 – when the oil major finalised its acquisition of BG in 2016.

Obiang Lima also announced winners of six offshore licences of Equatorial Guinea's 2016 licensing round in Cape Town on June 5, plus an out-of-round licence award to ExxonMobil.

Last month the EG government entered into a binding memorandum of understanding with OneLNG, Golar LNG’s joint venture with Schlumberger, to explore liquefaction and commercialisation of gas in the country's offshore Blocks O and I offshore Malabo, using a second FLNG vessel.

Mark Smedley