Golar LNG Enters Preliminary Deal for BP FLNG

Golar LNG Limited announced it has entered into a Preliminary Agreement and exchanged Heads of Terms (HoT) for an FLNG vessel for phase 1A of the Greater Tortue / Ahmeyin field, located offshore Mauritania and Senegal.

The Preliminary Agreement with BP Mauritania Investments Ltd and BP Senegal Investments Ltd creates obligations on Golar to progress FEED work and be ready for a vessel conversion from July 1, 2018 onward, which would be contingent on Project FID, expected end 2018.

The vessel conversion would take place at Keppel Shipyard Ltd, building on Keppel's delivery of the FLNG Hilli Episeyo, utilizing Black and Veatch Corporation's PRICO technology.

The Preliminary Agreement also includes an option for BP on a second FLNG vessel.

Customary termination fees apply in the event that FID is not taken.

Golar CEO, Iain Ross, commented, “This agreement with BP underscores the value that Golar's unique FLNG proposition brings to monetizing gas reserves to LNG at competitive prices. The FLNG contract shows solid long-term economics on an unleveraged basis. We are looking forward to building on the successful conversion of the Hilli Episeyo for Greater Tortue / Ahmeyin.”