Golar LNG to Sign FLNG Charter Deal with BP

Owner and operator of LNG carriers Golar LNG is looking to secure a charter agreement for a floating liquefied natural gas (FLNG) vessel with oil and gas major BP.

The company informed that it has entered into a preliminary agreement and exchanged heads of terms (HoT) for the charter deal with BP Mauritania Investments and BP Senegal Investments, in their capacity as block operators on the Greater Tortue/Ahmeyin field.

The HoT represents a commitment between the parties to translate the key commercial terms into a full agreement and proceed with front end engineering design (FEED) on the provision of an FLNG vessel to support the development of Phase 1A of the field, located offshore Mauritania and Senegal.

“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,” Iain Ross, Golar CEO, said.

The preliminary deal creates obligations on Golar to progress FEED work and be ready for a vessel conversion from July 1, 2018, which would be contingent on project FID, expected end 2018. Keppel Shipyard would undertake the vessel conversion operations, building on Keppel’s delivery of the FLNG Hilli Episeyo.

Under the deal,  BP also has an option on a second FLNG vessel.