African-focused independent Ophir Energy has shortlisted bidders battling to supply it with a leased Floating Liquefied Natural Gas (FLNG) unit for its deepwater gas resources off Equatorial Guinea, while also planning a drilling campaign this year aimed at firming up additional reserves.

The company has for some time been lining up an FLNG facility for its gas fields in Block R, where it holds an 80% stake as operator, and has signed a Letter of Intent (LoI) appointing Petrofac as the development operator. The non-binding LoI will see the latter provide services as operator of the proposed development up to the Final Investment Decision.

The services are expected to include preparing and issuing the field development plan for the project, and co-ordination of the interface between the upstream and midstream elements. The provision of services is conditional on a binding agreement being reached between Ophir and Petrofac.

Ophir has been in talks with a number of FLNG vessel players and received several proposals, which it has now shortlisted for further assessment with non-binding LoIs signed with the selected candidates. The republic’s Ministry of Mines, Industry and Energy is, along with Ophir, reviewing the competing proposals and a Memorandum of Understanding will be executed with the preferred FLNG vessel provider on completion of the process by around mid-2014, DI hears. The FLNG FEED and Integrated FEED will be completed this year and into 2015.

The initial costs pre-first gas have previously been estimated by Ophir at between US $1-1.5 billion, with the lease option for an FLNG floater meaning no capital exposure for Ophir.

The operator has chosen FLNG as the fastest route for getting its gas to market, saying recently that it also had a lower cost of production compared to a land-based LNG train, as well as enabling staged upstream capital expenditure and an expandable vessel capacity. Block R is also described by the operator as “ideal for FLNG” with its 2.6 Tcf of dry gas and benign sea conditions.

Ophir is targeting additional gas resources with a drilling programme this year to further enhance the project’s economics. Achieving 3 Tcf of reserves, it says, would support a 2.5 MMtpa FLNG train at 400 MMcf/d.

DI understands the operator will follow a phased field development over field life, with the first phase to feature seven wells and first gas by 2018. The operator is also on the hunt for an upstream farm-in partner by the end of the year.

Ophir has contracted Vantage’s Titanium Explorer to drill three wells this year in a bid to increase the resource base and test a deeper liquids play. It estimates an additional 2 Tcf of low-risk prospective resources, and up to 7 Tcf of unrisked upside. Block R covers 2,450 sq km in water depths ranging from 600-1,950 m (1,968-6,398 ft). Wells will be drilled on Silenus East-1 (exploration), Tonel North-1 (appraisal) and Fortuna-2 (appraisal).