OneLNG Eyes Second FLNG Scheme for EG
Tuesday 30 May 2017
Schlumberger and Golar LNG have moved a step closer to starting a second floating liquefied natural gas project in Equatorial Guinea after their joint venture signed a binding agreement with the local government.
OneLNG signed the deal with the Ministry of Mines and Hydrocarbons to explore the liquefaction and commercialisation of natural gas from offshore blocks O and I.
The joint venture between oilfield services Schlumberger and Norwegian offshore contractor Golar will commit funding to explore the technical and commercial feasibility of an FLNG development, which would be the second in Equatorial Guinea, as the Ophir Energy-led Fortuna scheme nears a final investment decision.
The OneLNG partners are pressing for an agreement on the FLNG development by the end of this year.
Late last year Ophir formed a joint operating company with OneLNG to progress its own plans at Fortuna. The company was set up to “facilitate the financing, construction, development and operation of the integrated Fortuna project,” where a sanction is imminent.
FID was due to be taken in the first half of 2017 with capital expenditure for the integrated project estimated at $2 billion to first gas targeted for 2020.
The Fortuna FLNG project will aim to exploit around 2.6 trillion cubic feet of gas at the field over a 15 to 20-year lifetime, with initial offtake estimated at between 2.2 million and 2.5 million tonnes per annum.
Ophir has said award of an engineering, procurement, construction, installation and commissioning contract is on schedule.
It was reported earlier this year that a joint venture of McDermott International and GE is the front-runner for the integrated subsea contract, ahead of a rival alliance of Aker Solutions and Subsea 7.
The package will cover an initial four-well subsea production system, along with umbilicals, risers and flowlines, all to be installed in about 1800 metres of water in Block R off Bioko Island.
The vessel will be acquired by Fortuna Joint Operating Company once FID is made, while Equatorial Guinea has the right to own up to 30% of the unit.
This initial subsea infrastructure is due to supply more than 330 million cubic feet per day of gas to an FLNG vessel leased from OneLNG. The vessel will be acquired by Fortuna Joint Operating Company once FID is made, while Equatorial Guinea has the right to own up to 30% of the unit.
Under a multi-phase scheme, as many as 13 new wells could be needed to tap Fortuna’s 3 trillion cubic feet of gas.