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Golar to supply FLNG vessel for BP in Africa

Feb 27, 2019
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Golar LNG has entered into an agreement to supply a FLNG unit to BP for phase 1 of the Greater Tortue / Ahmeyim Project, West Africa.

The deal was with Gimi MS, a newly incorporated subsidiary, was for a 20-year Lease and Operate Agreement with BP for the charter of an FLNG unit, Gimi, to service the Greater Tortue Ahmeyim project.

Expected to commence production in 2022, the FLNG Unit Gimi will liquefy gas as part of the first phase of the Greater Tortue Ahmeyim project and be located at a nearshore hub located on the Mauritania and Senegal maritime border. FLNG Gimi is designed to produce an average of approximately 2.5 million tonnes of LNG per annum with the total gas resources in the field estimated to be around 15 trillion cubic feet.

Golar CEO Iain Ross said, "This landmark 20-year agreement with BP, which is Golar's second FLNG tolling agreement, is the culmination of a lot of hard work and commitment from the project and commercial teams that commenced late 2017.  The potential of Golar's floating LNG solution was reinforced by FLNG Hilli Episeyo's proof of concept, Heads of Terms were agreed with BP and its partners in April 2018 and work has been ongoing via the previously reported Limited Notice to Proceed."

Construction of FLNG Gimi is expected to cost approximately US$1.3 billion, excluding financing costs. Golar said its plan is that together with other financing facilities, by the end of the 4-year construction period the anticipated maximum total equity contribution from the Company in respect of its 70 per centstake will be approximately $300 million.

Gimi MS said it has entered into a Subscription Agreement with Keppel Capital, in respect of their participation in a 30 per cent share of FLNG Gimi.  The deal is subject to closing conditions. Gimi MS will construct, own and operate FLNG Gimi and First FLNG Holdings Pte. Ltd. will subscribe for 30 per cent of the total issued ordinary share capital of Gimi MS for a subscription price equivalent to 30 per cent of the project cost.

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