Golar and Perenco agree the material commercial terms for the floating liquefied natural gas export project in Cameroon
01 July 2015 - 07:01AM
Hamilton, Bermuda: Golar LNG
Limited ("Golar") is pleased to announce that, further to the
announcement on 24 December 2014 regarding the signing of a Heads
of Agreement with Societe Nationale de Hydrocarbures ("SNH") and
Perenco Cameroon ("Perenco") for the development of a floating
liquefied natural gas export project in Cameroon, agreement has now
been reached with the support of the Boards of both Golar and
Perenco on the material commercial terms and conditions for the
project. The Tolling Agreement which defines the material
commercial terms and conditions for the project is now subject to
finalisation with SNH and government approval. Similarly, the
Midstream Gas Convention setting out the regulatory and fiscal
regime governing the FLNG operations in Cameroon is being
progressed in parallel with the Tolling Agreement and is also now
subject to finalisation with the government. It is anticipated that
final approval by all parties (including the government in
Cameroon) for the Tolling Agreement and the Midstream Gas
Convention will take place late Q3, 2015.
Golar, Perenco and SNH have for
the past two years been developing a floating liquefied natural gas
export project located near shore off the coast of Cameroon
situated in an area of benign sea states and utilizing Golar's
floating liquefaction technology (GoFLNG). The project is based on
the allocation of 500 Bcf of natural gas reserves from offshore
Kribi fields, which will be exported to global markets via the
GoFLNG facility Hilli, now under construction at the Keppel
Shipyard in Singapore. Golar will provide the liquefaction
facilities and services under a tolling agreement to SNH and
Perenco as parties of the upstream joint venture. It is
anticipated that the allocated reserves will be produced at a rate
of 1.2 million tonnes of LNG per annum, representing approximately
50% of the vessel's nameplate production capacity, over an
approximate eight year period. It is expected that production will
commence in Q2, 2017.
The project in Cameroon is
expected to deliver an EBITDA for Golar in the first full year of
operation, based on the utilisation of 2 of the available 4
liquefaction trains, in the range of $170 million to $300 million,
with a flexible tolling structure which correlates to Brent crude
oil prices ranging from a floor of $60/bbl to a cap of $102/bbl.
The marketing of LNG from the project remains the responsibility of
Perenco and SNH.
Golar's CEO Gary Smith commented
"Golar is delighted to have achieved this very significant
milestone in what will be our first GoFLNG project. This project in
Cameroon is breaking new ground both technically and commercially
for the LNG industry and would not have been possible without the
innovative approach adopted by the teams at Perenco, SNH and Golar.
This commitment with Perenco represents a further step in the
implementation of Golar's strategy to become the industry's leading
integrated midstream LNG services provider, supporting resource
owners, gas producers and gas consumers."
FORWARD LOOKING
STATEMENTS
This press release contains
forward-looking statements (as defined in Section 21E of the
Securities Exchange Act of 1934, as amended) which reflects
management's current expectations, estimates and projections about
its operations. All statements, other than statements of
historical facts, that address activities and events that will,
should, could or may occur in the future are forward-looking
statements. Words such as "may," "could," "should," "would,"
"expect," "plan," "anticipate," "intend," "forecast," "believe,"
"estimate," "predict," "propose," "potential," "continue," or the
negative of these terms and similar expressions are intended to
identify such forward-looking statements. These statements
are not guarantees of future performance and are subject to certain
risks, uncertainties and other factors, some of which are beyond
our control and are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Unless
legally required, Golar undertakes no obligation to update publicly
any forward-looking statements whether as a result of new
information, future events or otherwise.
Among the important factors that
could cause actual results to differ materially from those in the
forward-looking statements are: changes in LNG, FSRU and
FLNGV market trends, including charter rates, ship values and
technological advancements; changes in the supply and demand for
LNG; changes in trading patterns that affect the opportunities for
the profitable operation of LNG carriers, FSRUs; and FLNGVs;
changes in Golar's ability to retrofit vessels as FSRUs and FLNGVs,
Golar's ability to obtain financing for such retrofitting on
acceptable terms or at all and the timing of the delivery and
acceptance of such retrofitted vessels; increases in costs; changes
in the availability of vessels to purchase, the time it takes to
construct new vessels, or the vessels' useful lives; changes in the
ability of Golar to obtain additional financing; changes in Golar's
relationships with major chartering parties; changes in Golar's
ability to sell vessels to Golar LNG Partners LP; Golar's ability
to integrate and realize the benefits of acquisitions; changes in
rules and regulations applicable to LNG carriers, FSRUs and FLNGVs;
changes in domestic and international political conditions,
particularly where Golar operates; as well as other factors
discussed in Golar's most recent Form 20-F filed with the
Securities and Exchange Commission. Unpredictable or unknown
factors also could have material adverse effects on forward-looking
statements.
Hamilton, Bermuda
June 30, 2015
Enquiries:
Golar Management Limited: + 44 207
063 7900
Brian Tienzo
Stuart Buchanan
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Golar LNG via Globenewswire
HUG#1933144
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