Continental Focus, International Reach

Ophir Awaits Word on Block R Extension

Sunday, January 6, 2019

Ophir Energy is still waiting from the government of Equatorial Guinea to respond to its extension request for Block R offshore the Gulf of Guinea country. The company said it expected to receive word from the Ministry of Mines and Hydrocarbons (MMH) sometime this month.

Block R is destined to be the location of Africa’s first deepwater FLNG project.

“We continue to engage with the MMH as well as potential investors in the Fortuna Development. We expect to receive further communication from the MMH in January concerning either the lapse of the license or the terms of any extension and will update shareholders as soon as the situation is clarified,” the company said in a press release.

Ophir holds an 80% operated interest in Block R, located to the west of Bioko Island in water depths of up to 1,950 meters. There have been six commercial discoveries to date in Block R, five of which were made by Ophir.

The project will see a Golar-owned LNG tanker, the Ghandria, be converted into a Floating Liquefaction, Storage and Offloading vessel.

The project entered FEED in July 2015 and FID is expected once a financing solution is finalized. Production is expected to be around 330 Mmscf/d with a plateau of 30 years.