Ophir Energy has ended talks with Schlumberger over the company’s upstream participation in its Fortuna project in Equatorial Guinea.
The firm’s shares fell sharply after Ophir said it had been unable to completed the deal on the terms which had been agreed in January.
At the time, the talks had discussed the possibility of Schlumberger receiving 40% economic interest in the floating liquefied natural gas project.
Nick Cooper, chief executive of Ophir, said:”The Fortuna project workstreams are progressing towards FID. We have been reviewing a number of options and our discussions continue with other quality counterparties that can offer an attractive source of funding. In addition, the reduction in the capex to first gas has lowered the project breakeven oil price to approximately $40 per bbl.
“We continue to work closely with Golar, the prospective offtakers and the other potential partners and remain confident that we will take the FID in 2016.”