Keppel in Talks with Golar Over FLNG Conversion Contract

Keppel today released an announcement regarding Golar LNG Ltd’s Floating Liquefied Natural Gas (FLNG) vessel project, revealed in its third quarter 2013 results announcement on 27 November 2013, and the Business Times article entitled “Keppel Shipyard may land $750m Norway deal” published on 30 November 2013.

The company confirms that Keppel Shipyard Ltd and its topside partners are currently negotiating conversion and liquefaction contracts with Golar LNG on the conversion of an existing LNG carrier into a Floating Storage and Liquefaction Vessel (FLSV).

The terms and conditions of the contracts, including the contract value and expected completion timeline, have yet to be finalised.

The negotiations on the contracts commenced following the conclusion in end August 2013 of a Front-End Engineering and Design (FEED) study conducted by Keppel Shipyard to confirm the engineering and work scope. The study confirmed that the conversion will take approximately 30 months from financial commitment to complete.

Keppel announced this FEED study in a statement on 5 November 2012, where the company also stated that upon completion of the FEED study, Keppel Shipyard would proceed to work with Golar LNG on the conversion and engineering of the first of three FLNG vessels.

There will be an option to convert the other two FLNG vessels at a later date.

A further announcement will be made upon the execution of firm contracts with Golar LNG.

[mappress]

Press Release, December 2, 2013