Ophir Says Fortuna FID now '1H 2017'

UK-based Ophir Energy said that its Fortuna floating liquefaction (FLNG) project offshore Equatorial Guinea “remains firmly on schedule for a final investment decision in 1H 2017.”

The announcement came in a trading update January 12, which noted that Ophir and partner OneLNG "are making good progress against all key milestones." However over the past year, it’s equally clear that the Fortuna FID has slipped from 4Q 2016 to 1Q 2017 and now to "1H 2017" and thus may be less likely to achieve first LNG in 2020.

Golar LNG and Schlumberger formed OneLNG as a 51%-49% joint venture in July 2016 to “rapidly” develop low-cost gas reserves to LNG.

Structure of Golar's OneLNG partnership with Schlumberger, and how it relates to Fortuna FLNG which was eyeing a start up in 2020 subject to FID in early 2017 (Graphic credit: Golar LNG 3Q results)

Elsewhere in west Africa, Ophir said it plans to spud the deepwater oil exploration well, Ayame-1, offshore Cote d’Ivoire in late May, targeting some 240mn barrels P-mean of recoverable resources with an estimated 28% chance of commercial success. Ophir has a 45% operated interest in the licence.

Ophir also said last month it secured its first exploration footprint outside Asia and Africa when it won the Block 5 licence, in the latest offshore Mexico bid round. It has a 23.3% non-operated interest, alongside US Murphy Oil (operator), Sierra Oil and Gas, and Malaysian state Petronas.

In Indonesia, Ophir says cables needed to supply power to its Kerendan field are now being installed that will enable the field to ramp up to its the full daily contract quantity of 20mn ft³/d. It added that upstream regulator SKKMigas has approved the West Kerendan-1 plan, which is expected to add 7mn ft³/d to the production profile from 2019.

A Shell-led partnership, including Ophir, drilled a costly dry well offshore Tanzania late last year, under efforts to appraise earlier gas resources.

Ophir’s worldwide 2017 production guidance is estimated at 12,500-13,500 barrels of oil equivalent/d and the company said it began a refinancing of its debt facilities at the end of 2016 which should complete in 2Q 2017. It expects to finish 2017 with a net cash position of $75mn-100mn and, with the refinancing of its debt facilities in 2017, a gross cash position of $350mn-400mn.

Mark Smedley