Ophir Energy (LON:OPHR) has announced it has been unable to complete a deal with Schlumberger (SLB US) that would have seen it become OPHR’s upstream partner on its Fortuna FLNG project in Equatorial Guinea.
However, OPHR still believes the project is financially attractive and remains in discussions with other parties over the funding of the project. After completion of the FEED studies OPHR estimates the capex requirement from FID to first gas has now come down from US$600m to US$450-500m gross.
The result of this means it is likely that the timings on the project will now be pushed back several months and FID is now anticipated in Q4 2016 with first gas in early 2020.