LNG

Ophir Energy, the UK company based in London that was forced to suspend plans for LNG export projects in Equatorial Guinea and Tanzania, plans to move its head office to Asia and cut costs while awaiting the appointment of a new Chief Executive.

Ophir Energy, the UK-based energy company and stakeholder in the Equatorial Guinea floating liquefied natural gas project offshore West Africa, said Chief Executive Nicholas Cooper was leaving the company amid delays in taking the FLNG joint venture to a final investment decision.

May 14 (LNGJ) - Two LNG project stakeholders in West Africa, Ophir Energy of the UK and Kosmos Energy of Texas, will jointly develop an exploration and production licence offshore Equatorial Guinea. Ophir, a stakeholder in the Fortuna floating LNG venture with other companies offshore Equatorial Guinea, acquired its newest Block EG-24 exploration licence in nation’s 2017 bidding round. Kosmos, a joint venture partner with BP of the UK in two FLNG projects offshore Mauritania and Senegal, will acquire a 40 percent non-operated interest in Block EG-24 from Ophir. The deal includes Kosmos paying for the cost of a block-wide 3D seismic survey during the first exploration period of the licence. It will also partially carry Ophir for the cost of a well if one is drilled. “Kosmos is a logical partner for us in EG-24 as its team have considerable prior experience of the Rio Muni Basin,” said Nick Cooper, Ophir Chief Executive.

Marathon Oil Corp. and its partners said they signed an agreement with the Government of Equatorial Guinea and third parties to establish the framework for processing natural gas volumes at the onshore liquefaction plant at Punta Europa on Bioko Island.

Ophir Energy, the minority stakeholder in the Fortuna floating LNG export venture proposed for offshore the West African state of Equatorial Guinea, said funding discussions with banks were continuing and its own financial footing was sound ahead of a final investment decision.

Ophir Energy of the UK, the leader of the Fortuna floating liquefied natural gas project offshore Equatorial Guinea, said intensive efforts were being made by all partners to achieve a final investment decision before the end of the fourth quarter of 2017.

The Equatorial Guinea floating LNG project owners said the 2.2 million tonnes per annum of offtake volumes from the West African joint venture has gone to global commodities firm Gunvor as the preferred buyer.

July 12 (LNGJ) - Ophir Energy of the UK said it was prioritising the Fortuna Floating LNG project offshore Equatorial Guinea even as it further reduced the company’s underlying cost base in recognition of limited signs of an oil price recovery and lower exploration activity. “Ophir’s discretionary spend will be paced to preserve balance sheet capacity, thereby prioritising the Fortuna FLNG project and the expansion of Ophir’s Asian producing assets,” the company said. Nick Cooper, Chief Executive of Ophir, commented: “We are closing in on the Fortuna Project final investment decision to start the monetisation of a substantial portion of Ophir’s resource base.”

June 21 (LNGJ) - Ophir Energy of the UK, developer of the Equatorial Guinea floating LNG project in West Africa, said it signed a $250 million reserve-based loan facility secured against the group’s production assets in Southeast Asia. In addition to the $250M, a further $100M is available on an uncommitted basis from a group of seven international banks. The facility has a seven-year term and matures on 30 June 2024.  “The combination of existing cash, this credit facility and cash flows from operations will provide the capital for Ophir to continue to invest to maximise the cash generation of its production and development portfolio,” said Ophir’s Chief Financial Officer Tony Rouse.

Ophir Energy of the UK, the licence holder for the Fortuna floating LNG project in Equatorial Guinea, said a full legal and fiscal framework agreement has been signed by all parties, signalling the go-ahead for the venture offshore West Africa with Chinese-sourced loans.