Golar LNG, through its newly incorporated subsidiary Gimi MS, has entered into a 20-year lease and operate agreement (LOA) with BP for the charter of an FLNG unit Gimi to serve the Greater Tortue Ahmeyim project.
Production from the FLNG unit Gimi is expected to start in 2022, and as part of the first phase of the Greater Tortue Ahmeyim project, it is expected to liquefy gas. The FLNG unit is to be located at an innovative nearshore hub located on the Mauritania and Senegal maritime border.
Using the Black & Veatch “Prico” liquefaction process, FLNG Gimi is designed to produce an average of approximately 2.5 million tons of LNG per annum and the total gas resources in the field estimated to be around 15 trillion cubic feet.
Along with the signing of the LOA, Gimi MS has also entered into a subscription agreement with First FLNG, an indirect wholly-owned subsidiary of Keppel Capital in respect of their participation in a 30% share of FLNG Gimi.
Gimi MS will build, own and operate FLNG Gimi and First FLNG is expected to subscribe for 30% of the total issued ordinary share capital of Gimi MS for a subscription price equivalent to 30% of the project cost.
Golar CEO Iain Ross said: “This landmark 20-year agreement with BP, which is Golar’s second FLNG tolling agreement, is the culmination of a lot of hard work and commitment from the project and commercial teams that commenced late 2017.
“The potential of Golar’s floating LNG solution was reinforced by FLNG Hilli Episeyo’s proof of concept, Heads of Terms were agreed with BP and its partners in April 2018 and work has been ongoing via the previously reported Limited Notice to Proceed.”
Conversion works for LNG carrier Gimi are expected to start soon and Gimi has been relocated from layup to Keppel Shipyard for the conversion.
Construction of FLNG Gimi is expected to cost approximately $1.3bn, excluding financing costs.
Ross Added: “Golar is delighted to have the opportunity to demonstrate the safe and reliable operation, quality and value of its FLNG offering to such a world class energy company as BP and looks forward to safely delivering and building on this long-term relationship over the decades ahead”.