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Sunday, May 7, 2017
Equatorial Guinea’s Fortuna FLNG Project has taken a step further in coming to fruition with the signing of an Umbrella Agreement (UA). The agreement was signed between the government, Ophir Energy, OneLNG, and La Compañía Nacional De Petróleos De Guinea Ecutorial (GEPetrol) and establishes full legal and fiscal framework for the FLNG project.
Fortuna FLNG is set to be Africa’s first deepwater FLNG project.
The UA reconfirms the participation rights of GEPetrol as partners for 20% of the upstream portion of the project, and for a future potential participation of up to 30% ownership of the midstream FLNG vessel by the government or a designated state company. These participations create alignment with the government throughout the project value chain from upstream through to LNG marketing. Signing the UA was one of the key milestones to be delivered ahead of the FID. The Fortuna FLNG Project FID is on schedule for mid-2017 with first gas expected in mid-2020.
The execution of the UA completes one of the four key milestones required for FID. The other three milestones are: (i) the award of construction contracts for the upstream and midstream vessel, (ii) the completion of the project finance facility and (iii) a decision on the amount of gas to be termed at FID and signature of resulting LNG SPAs.
According to Ophir, the project is moving forward with an award of the construction contracts progressing and on schedule. Term sheets have been agreed on with a consortium of China-based lenders. The counter-parties to the financing have now entered into final documentation stage.
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