London-based Ophir Energy can move forward with its Fortuna FLNG project off the coast of Equatorial Guinea without new partners, due to declining cost estimates.
Speaking to Reuters, Oliver Quinn , Ophir’s director of new business, said the capital costs are currently around US$450 million or 50 percent below the costs expected a couple of years ago.
He added that Ophir’s equity was limited at $150 million as the company did not want to overexpose the balance sheet to the project. The government of Equatorial Guinea is expected to provide $90 million.
The remaining funds would be provided by a partner, debt or a loan to the project agreed under the gas sales agreement.
In September, Ophir said the Fortuna FLNG project is “technically ready” for a final investment decision, adding that it is searching for partners to help fund the project.
However, Quinn said that a partner is not needed as the low oil and gas prices have forced service providers to lower the costs.
LNG World News Staff