Ophir Energy Plc Fortuna FLNG Offtake Awarded to Gunvor (4738O)
August 21 2017 - 1:00AM
UK Regulatory
TIDMOPHR
RNS Number : 4738O
Ophir Energy Plc
21 August 2017
21(st) August 2017
Ophir Energy plc
("Ophir")
Fortuna FLNG Offtake Awarded to Gunvor
The Ministry of Mines and Hydrocarbons ("MMH"), Ophir Equatorial
Guinea (Block R) Ltd, OneLNG SA and La Compania Nacional De
Petroleos De Guinea Ecuatorial ("GEPetrol") have nominated Gunvor
Group ("Gunvor") as their preferred LNG Buyer for offtake from the
Fortuna FLNG project. All parties have agreed the principal
commercial terms subject to finalising a Sale and Purchase
Agreement ("SPA") for the offtake ahead of the Final Investment
Decision ("FID") on the Fortuna FLNG project.
Gunvor is committed to taking the full contract capacity of the
Gandria FLNG vessel of 2.2 MMTPA, which will be purchased on a
Brent-linked, Free on Board ("FOB") basis for a 10 year term. The
contract structure allows flexibility for up to 1.1 MMTPA of the
Fortuna capacity to be marketed on an alternate basis. Consequently
the agreement gives the Fortuna partners, alongside the State of
Equatorial Guinea, the potential to sell volumes to higher priced
gas markets in Africa and beyond, whilst retaining a share in the
profits of such sales.
With a preferred LNG Buyer now nominated, the last significant
milestone remaining prior to FID for the Fortuna FLNG project is
the completion of project funding, with FID remaining on track for
later in 2017.
His Excellency, Gabriel Mbaga Obiang Lima, Minister of Mines and
Hydrocarbons for the Republic of Equatorial Guinea, commented: "The
selection of Gunvor sets a landmark moment in the development of
the Fortuna Project. The partnership with Gunvor also paves the way
for the government's objective to deliver important projects that
monetize our gas, promotes local content and brings world-class
petroleum technology to Equatorial Guinea. The Fortuna Project will
target becoming the first choice supplier of LNG for the LNG to
Africa initiative, furthering Equatorial Guinea's leadership
position in Africa as an LNG exporter."
Nick Cooper, Chief Executive of Ophir, commented: "We thank
those parties that participated in the competitive tender process
for the offtake and welcome Gunvor to the Fortuna FLNG Project.
Gunvor's involvement is a further addition to a strong partnership
along the Fortuna value chain. Our focus is now on completing the
financing package and debt facility. With Golar's sister vessel,
the Hilli, nearing completion and with Petronas FLNG having
recently delivered commercial cargoes, FLNG is now entering the
mainstream."
Jeff Goodrich, CEO OneLNG SA, commented: "OneLNG, along with the
State of Equatorial Guinea and Ophir, would like to take the
opportunity to welcome Gunvor to the Fortuna family. We look
forward to working together to set the new performance benchmark in
FLNG."
Information contained within this announcement is deemed by the
Company to constitute inside information for the purposes of the
Market Abuse Regulations (EU) No. 596/2014 ("MAR")
For further enquiries please contact:
Ophir Energy plc + 44 (0) 20 7811 2400
Nick Cooper, CEO
Tony Rouse, CFO
Geoff Callow, Head of IR and Corporate Communications
Brunswick (PR Adviser to Ophir) +44 (0)20 7404 5959
Patrick Handley
Wendel Verbeek
About Ophir:
Ophir Energy is an independent Upstream oil and gas exploration
and production company focused on Africa and Asia. It is listed on
the London Stock Exchange.
About Gunvor:
Gunvor Group is one of the world's largest independent
commodities trading houses by turnover, creating logistics
solutions that safely and efficiently move physical energy and bulk
materials from where they are sourced and stored to where they are
demanded most. For more information, visit www.GunvorGroup.com or
@Gunvor
This information is provided by RNS
The company news service from the London Stock Exchange
END
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