Ophir Enters EG-24 Block
Equatorial Guinea’s energy ministry announced October 17 it has signed a memo of understanding to award a production sharing contract (PSA) for the EG-24 block offshore Rio Muni to UK independent Ophir Energy and state-owned GEPetrol.
This block is among the 20 exploration areas marketed during the EG licensing round launched in 2016 and in which 23 firms participated, of which only seven successfully including Ophir - with ExxonMobil awarded an 'out of round' block.
Under the PSA, Ophir holds a 80% interest in the block while GEPetrol has the remaining 20% with the option to increase this stake to 30% if a commercial discovery is made. It covers an initial exploration period including two periods of two years each and a further period also divided into two periods of one year each. Before this period is over, Ophir will acquire and process 2D and 3D seismic data about the block and interpret 3,000km2 of new 3D seismic data. If a major discovery is made, the PSC specifies a 25-year development and production period with an extension period of 5 years.
Ophir Energy controls the R offshore gas block, destined to host the 2.2mn mt/yr Fortuna floating LNG venture from 2020, subject to a final investment decision later this year. Half of its output is contracted to Swiss trader Gunvor for ten years. Malabo plans to sell the rest of the output to its African neighbors, including Ghana, and to Asian countries whose demand is booming.
In May 2017 the EG government entered into a binding memorandum of understanding with OneLNG, Golar LNG’s joint venture with Schlumberger, to consider a possible 2nd FLNG venture based on gas in the country's offshore Blocks O and I that would start up a few years after 2020.
Olivier de Souza