Golar LNG Limited business update
April 16 2019 - 1:17PM
Golar LNG Limited ("Golar" or "the Company")
announces today that, further to the announcement made on February
26 with regards to the BP Tortue project, Gimi MS Corporation
("Gimi MS"), a 70% owned subsidiary of Golar, has received a firm
$700 million underwritten financing commitment for the FLNG Gimi.
FLNG Gimi will service the 20-year Tortue contract with BP due to
commence in 2022. Available during construction, the financing has
a tenor of 7 years post COD and a 12-year amortisation profile.
Clifford Capital Pte. Ltd, ING Bank N.V., Natixis and ABN
Amro Bank N.V. acted as facility underwriters.
Concurrent with receipt of the financing
commitment, First FLNG Holdings Pte. Ltd ("FFH"), an indirect
wholly owned subsidiary of Keppel Corporation Limited held through
Keppel Capital Holdings Pte Ltd subscribed to 30% of the total
issued ordinary share capital of Gimi MS. Gimi MS also issued
Keppel Shipyard with a Final Notice to Proceed with FLNG Gimi
conversion works that had been initiated under the Limited Notice
to Proceed in December 2018.
Project developers of the Croatian FSRU
facility, LNG Hrvatska d.o.o. have also issued Golar with a Notice
to Proceed with the conversion and subsequent purchase of the 2005
built LNG carrier Golar Viking. Conversion capex will largely
be funded by stage payments from LNG Hrvatska under the
agreement. After a robust vetting process Hudong has
been selected as the yard to undertake the requisite conversion
works. CSSC Leasing, an affiliate company of the yard, is
expected to provide both conversion financing and bridging finance
for the current vessel facility between yard entry, expected in 1Q
2020, and sale to LNG Hrvatska for €159.6 million upon completion.
Golar will also receive an annual fee to operate the FSRU for
10-years.
Golar has also received agreement from Lenders
of the FSRU Golar Tundra, subject to documentation, to extend the
June 2019 maturing facility to June 2021. Documentation of
the Gimi and Tundra facilities is now underway. Having agreed a
term sheet, good progress has also been made with respect to
refinancing the December 2019 maturing LNG carrier Golar Arctic
facility.
CEO Iain Ross commented, "In line with guidance
provided in the last quarterly earnings announcement Golar
continues to make progress in line with expectations. The
Company looks forward to providing further details when it reports
its 1Q 2019 results next month".
FORWARD LOOKING STATEMENTS
This press release contains forward-looking
statements (as defined in Section 21E of the Securities Exchange
Act of 1934, as amended) which reflects management's current
expectations, estimates and projections about its operations. All
statements, other than statements of historical facts, that address
activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as "may,"
"could," "should," "would," "expect," "plan," "anticipate,"
"intend," "forecast," "believe," "estimate," "predict," "propose,"
"potential," "continue," or the negative of these terms and similar
expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other factors, some of which are beyond our control and are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Unless legally required, Golar undertakes no
obligation to update publicly any forward-looking statements
whether as a result of new information, future events or
otherwise.
Among the important factors that could cause
actual results to differ materially from those in the
forward-looking statements are:
- our inability and that of our counterparty to meet our
respective obligations under the Lease and Operate agreement
entered into in connection with the BP Greater Tortue / Ahmeyim
Project, or the FSRU Delivery Contract entered into in connection
with the Croatian FSRU project with LNG Hrvatska d.o.o;
- changes in our relationships with our counterparties, including
our major chartering parties;
- failures of shipyards to comply with delivery schedules or
performance specifications on a timely basis or at all;
- changes in our ability to obtain additional financing on
acceptable terms or at all;
- increases in costs, including, among other things, wages,
insurance, provisions, repairs and maintenance as well as the cost
of constructing the FLNG Gimi and converting the Golar Viking;
- changes in general domestic and international political
conditions, particularly where FLNG Gimi will operate;
- a decline or continuing weakness in the global financial
markets; and
- other factors listed from time to time in registration
statements, reports or other materials that we have filed with or
furnished to the Securities and Exchange Commission, or the
Commission, including our most recent annual report on Form
20-F.
As a result, you are cautioned not to rely on
any forward-looking statements. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise unless required by
law.
Hamilton, Bermuda
April 16, 2019
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan
Golar LNG (NASDAQ:GLNG)
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