5th May 2015 06:37
LONDON (Alliance News) - Ophir Energy PLC Tuesday said it has signed a binding heads of terms for a midstream chartering and operating services agreement with Golar LNG for a project in Block R in Equatorial Guinea.
The FTSE 250 oil and gas company said it signed the agreement with Golar LNG after holding discussions with GEPetrol, Ophir's partner on Block R. GEPetrol is expected to formally ratify the agreement next week, said the company in a statement.
The agreement outlines the "key commercial terms" for Golar to build, operate and maintain the floating liquefication and storage vessel and related facilities on the Ophir-operated Fortuna floating liquefied natural gas project in Block R. The commercial terms were not revealed.
"Finalising our midstream partner is a significant step forward for the Fortuna FLNG project. This agreement accelerates the date of first gas and reduces costs in a critical part of the value chain," said Chief Executive Nick Cooper. "The agreement completes the value chain economics and allows Ophir to confidently plan for first gas, and 67,000 barrels of oil equivalent per day of production by mid-2019."
"We will now move immediately into the define phase of the upstream and midstream projects with a view to reaching final investment decision by mid-2016," he added.
By Joshua Warner; [email protected]; @JoshAlliance
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