Golar Gimi Lands 20-Year Gig

Bermuda-headquartered owner and operator of liquefied natural gas (LNG) carriers Golar LNG has signed a 20-year tolling contract with Ophir Energy for the floating liquefaction and storage vessel GoFLNG Gimi, scheduled to start operations offshore Equatorial Guinea in the first half of 2019.

Golar and Ophir have signed a binding heads of terms agreement for a midstream chartering and operating services. Golar will operate and maintain GoFLNG Gimi and facilities at Ophir’s operated Fortuna floating liquefied natural gas (FLNG) project in Block R, Equatorial Guinea.

GEPetrol, Ophir’s partner in Block R in Equatorial Guinea, will formally ratify the agreement next week.

At full production, Gimi will have a contracted capacity of 2.2 mtpa of LNG, to be marketed by Ophir and GEPetrol.

The project is expected to deliver an EBITDA for Golar in the first full year of operation in the region of USD 350M.

Golar, with its partners Keppel Shipyard and Black and Veatch, have previously committed to the Gimi FLNG conversion in December 2014.

The integrated Ophir/GEPetrol/Golar project is expected to take FID during the first half of 2016 following completion of the upstream FEED study.

“Our new approach to developing LNG projects is stimulating significant interest today. Accordingly, Golar has now, based on its framework agreement with Keppel Shipyard, commenced negotiations for the company’s third GoFLNG vessel,” Golar’s CEO Gary Smith said.

Gimi will be Golar’s second GoFLNG vessel following Hilli, which is scheduled to commence commercial operations in Cameroon during the first half of 2017.