Exmar settles Tango FLNG dispute with YPF
Belgium’s Exmar, the Nicolas Saverys-led shipowner, has finally settled its dispute with YPF over the Tango FLNG deal.
Under the settlement, effective October 19, YPF will pay $150 million to Exmar in consideration of the early termination of the agreements and withdrawing the arbitration proceedings.
The first instalment of $22 million has been remitted today. The
balance of $128 million is payable in 18 monthly instalments backed by adequate financial security, Exmar said.
The loan agreement with Bank of China and Deutsche Bank with respect to the Tango FLNG foresees a replenishment of the Debt Service Reserve Account for an amount up to $40 million. The specific modalities are currently being discussed with the lenders.
Tango FLNG is a floating liquefaction unit with a production capacity of approximately 0.5 million tons per annum of liquefied natural gas It is now available for other projects, the company said.
The company added it is actively pursuing commercial leads for new employment.