• 17 hours Saudi Fund Buys Stake in Hollywood Talent Agency
  • 22 hours Putin Is A New Russian Stalin - Victory For The Next 6 Years
  • 4 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 17 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 13 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 14 hours Trump Bans Venezuelan National Cryptocurrency
  • 8 hours Self-Driving Cars' First Fatality
  • 16 hours Volkswagen To Announce $340 Million Tennessee Investment To Build New SUV For U.S. Market
  • 17 hours Africa Is The New Land Of Opportunity For Investors
  • 4 days HAPPY RIG COUNT DAY!!
  • 4 days Russian hackers targeted American energy grid
  • 21 hours Miners against Government: Largest Miners In Congo Quit Chamber Of Commerce Amid Growing Tax Dispute
  • 13 hours Is Trump Harming Oil Industry?
  • 4 days Spotify to file $1 billion IPO
  • 13 hours Tillerson just sacked ... how will market react?
  • 4 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
The Truth About Aramco’s $2 Trillion Valuation

The Truth About Aramco’s $2 Trillion Valuation

There has been significant doubt…

Why U.S. Oil Exports Are Surging

Why U.S. Oil Exports Are Surging

U.S. oil exports have soared…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Schlumberger and Golar: Equatorial Guinea’s Fortuna Project Back On!

Offshore operation

Subsidiaries of oil majors Schlumberger and Golar LNG signed an agreement to pursue a joint venture for the Fortuna project, which will be executed in Equatorial Guinea’s offshore Block R, according to World Oil.

Golar’s OneLNG and Schlumberger’s Ophir will each take a 66.2 percent and 33.8 percent share, respectively, of the joint company JOC, which will help to ease the process of financing and developing the two firms’ portion of the project.

First-gas from the site is expected by the beginning of 2020, with 2.2-2.5 million tons of production per year for 15-20 years.

The deal’s current structure dictates that JOC will own Ophir’s Block R license as well as the Gandria floating liquefied natural gas vessel, but before any cash exchanges hands, both firms must make a final decision on initial financial contributions to the project.

Schlumberger had previously agreed to be part of the deal, but withdrew when the venture’s financials proved to be unwieldy.

“Formation of the Fortuna JOC provides the framework for FID and clear line of sight to first gas,” said Nick Cooper, CEO of Ophir, who expects the JOC to spend around $2 billion before tasting the first profits from the extracted gas, with $1.2 billion from loans.

“This progress is due to the innovative partnering between OneLNG and Ophir, the quality of the resource base, the excellent project economics and support from the government of Equatorial Guinea.”

Cooper added that his firm would not spend more than $150 million in cash to jumpstart the project’s operations.

Earlier this year, the International Monetary Fund said it expects Equatorial Guinea’s economy to shrink by a massive 10 percent in 2016 - after having already contracted by 7.4 percent last year - as low oil prices batter the economy’s dominant oil and gas sector.

The central African country is often used as a poster child for the “resource curse.”

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Synapsid on November 10 2016 said:
    Schlumberger is the world's largest oilfield-services company, not an oil major. I've not heard of Golan LNG but LNG isn't oil.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News