Ophir Still Hopeful of Early 2018 Fortuna FID

Ophir is still hopeful of pressing ahead with a FID for its $2bn, 2.2mn-2.5mn mt/yr Fortuna floating LNG project offshore Equatorial Guinea early next year.

This is despite the slow progress it had made in talks with the three Chinese banks, it said December 18. In May this year, Ophir had been confident that the Chinese banks would finance the untested technology, allowing FID this year. Other banks had been reluctant to lend.

Late November, Ophir said that it expected to be able to finalise Fortuna LNG financing by the middle of this month, but its London Stock Exchange update December 18 does not provide that certainty, saying that the project partners had decided to prioritise an "alternative funding solution" to China that would see a "leading" – but so far unnamed and not Chinese owned – Asian bank come up with $1.2bn, "on similar commercial terms to those agreed earlier this year with the original trio."

"These discussions are now continuing into the New Year. Upon confirmation of the financing the project will proceed to a final investment decision early next year," it said. However the talks with the Chinese banks are continuing, it told NGW. 

It said in its statement that Ophir is also collaborating with Fortuna shareholder OneLNG to confirm a prompt start to Fortuna project but this does not extend to financing. Ophir told NGW: "OneLNG is part of the conversations regarding financing but has also been focussed on the operational aspects of the project to ensure a prompt start once financing has been confirmed." OneLNG is a joint venture between oilfield services company Schlumberger and LNG shipping company Golar.

Ophir CEO Nick Cooper commented: "We are now focusing our efforts on closing out the prioritised solution and remain confident of commencing the Fortuna project in early 2018."