Golar LNG announced that Gimi MS Corp. (Gimi MS), a newly incorporated subsidiary of the company, has entered into a 20-year Lease and Operate Agreement (LOA) with BP for the charter of Gimi FLNG unit, to service the Tortue Ahmeyim LNG export project.
“Expected to commence production in 2022, the Gimi FLNG will liquefy gas as part of the first phase of the Greater Tortue Ahmeyim project and be located at an innovative nearshore hub located on the Mauritania and Senegal maritime border.”
Concurrent with its entry into the LOA, Gimi MS has entered into a Subscription Agreement (subject to closing conditions) with First FLNG Holdings, an indirect wholly-owned subsidiary of Keppel Capital, in respect of their participation in a 30% share of FLNG Gimi.
Gimi MS will construct, own and operate FLNG Gimi and First FLNG Holdings will subscribe for 30% of the total issued ordinary share capital of Gimi MS for a subscription price equivalent to 30% of the project cost. “LNG carrier Gimi has been relocated from layup to Keppel Shipyard in Singapore where conversion works are expected to commence soon.”
Construction of FLNG Gimi is expected to cost approximately $1.3 billion, excluding financing costs and under the contract, annual earnings before interest, tax, depreciation and amortization of approximately $215 million.
This agreement with BP is Golar's second FLNG tolling agreement, following the deployment of the Hilli Episeyo offshore Cameroon late November 2017.