Ophir Targets Fortuna FID 'by End 2016'
Ophir Energy says it and midstream partner Golar LNG are both “working towards a final investment decision (FID) being made before the end of 2016” on the Fortuna floating liquefaction project offshore Equatorial Guinea in West Africa. The original target was by mid-2016.
The project has “completed upstream front-end engineering and design (Feed) and locked in low cost solutions until mid-2017”, discussions with potential value chain partners continue, and is "technically ready" for FID, said Ophir in a results statement September 15, adding that it has shortlisted four LNG off-takers “all of whom are significant players in the LNG market.” After Schlumberger backed out of the Fortuna FLNG project in April, Ophir deferred its target for FID from mid-2016 to “during 4Q 2016, with first gas now forecast for early 2020” rather than in 2019.
Fortuna project logo (Photo credit: Ophir Energy)
In Tanzania, where FID is seen over a year away on a large Shell-led onshore LNG venture using gas from offshore blocks 1 & 4 in which Ophir has a 20% stake, it said: “We have experienced an increased government focus on key items to enable the development and there is now a political impetus to accelerate the project… confirmed by the award of the land for… midstream facilities.”
Elsewhere in Equatorial Guinea, Ophir said it had progressed an oil play in Block R jointly with Exxon with drill/drop decision to be made in 2017. It also announced this week that it recently began commercial production at its Kerendan gas field in Indonesia; the field started producing last month.
Ophir made a $48.4mn net loss in 1H 2016, compared with a $132mn loss in the year-ago period; other Africa-focused UK independents reported too.
Aminex's 1H2016 loss of $2.45mn was wider than its year-ago $0.6mn loss but it said that cash flow from Kiliwani North gas sales would move the company “towards a period of sustainable growth” and noted that ARA Petroleum, a division of the Oman-based Zubair Corporation, now owns just under 30% of Aminex following a recent issue of new shares.
Sound Energy, focused on Morocco and Italy, reported a 1H 2016 profit of £1mn, from a year-ago loss of £4mn, noted its recent 17mm ft³/dflow test at Tendrara in Morocco, and said it is continuing to appraise the “potential multi trillion ft³” field with the spud of well TE-7 there on 25 August 2016.
In other UK news, EnQuest said that discussions – announced mid-July – with Israel’s Delek Group over the possible sale of a sale to Delek of an interest in the North Sea Kraken field development “have now been terminated.”
Mark Smedley