Ophir Energy, Partners Sign $2 Billion Fortuna LNG Project Agreement
November 10 2016 - 3:31AM
Dow Jones News
By Alex MacDonald
LONDON--Ophir Energy PLC (OPHR.LN) said Thursday it has signed a
binding agreement with its partners to develop the $2 billion
Fortuna liquefied natural gas project in Equatorial Guinea starting
next year in order to start producing gas in the first half of
2020.
Under the agreement, U.K.-listed oil and gas explorer Ophir will
own a 33.8% stake in the project while OneLNG, a joint venture
between Golar LNG Ltd. (GLNG) and Schlumberger Ltd. (SLB), will
owns a 66.2% stake in the project.
The group plans to make the first investment in the first half
of next year with a view to producing 2.2-2.5 million tons of
liquefied natural gas a year over a period of 15 to 20 years.
About $1.2 billion of the budget will be debt financed. Prior to
the first investment, the company plans to make a decision on the
final offtake pricing mechanism. At an assumed free on board gas
price of $6 per million British thermal units, the venture will
generate approximately $560 million in cash flow a year, before
debt servicing.
"Ophir's committed future expenditure to first gas will not
exceed $150 million and certain other commercial exposures have
been limited. We will now be able to advance the project while
preserving our balance sheet strength," Ophir Chief Executive Nick
Cooper said.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
November 10, 2016 03:16 ET (08:16 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Schlumberger (NYSE:SLB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Schlumberger (NYSE:SLB)
Historical Stock Chart
From Apr 2023 to Apr 2024
