HAMILTON, Bermuda, May 10, 2016 (GLOBE NEWSWIRE) -- The fast growing LNG industry is going through a rapid transformation where
monetisation of stranded gas, lowering the cost of LNG production and the opening of new markets will all be critical success
factors.
An anticipated delinking of LNG prices from oil prices will also create additional demand for LNG. The
traditional approach to executing LNG projects favoured by many oil majors may not cost effectively meet this new demand. The Board
of Golar has therefore decided to promote strategic organizational changes to ensure that the company is positioned to meet this
demand.
As a priority, the company remains focused on maximising the utilisation and rate levels of the LNG carriers and
seeking employment for the FSRU fleet, whilst the business growth strategy and long term vision embraces the following
opportunities:
1. To ensure that the Company's first FLNG vessel, Golar Hilli, is developed on time and within
budget and successfully commences its operations. Most of this activity is currently coordinated from the Company's Oslo
office. The Board is pleased that the vessel conversion is progressing well within budget and is on target for its scheduled
delivery from the yard.
2. To capitalise on its position as one of the few credible companies able to develop future
FLNG projects.
3. To explore the development of a downstream LNG company comprising the implementation of
strategic LNG entry points in emerging markets. The company would start with a portfolio of opportunities including participation
in a 1.5GW power station in Sergipe, Brazil, backed by a 25-year PPA contract. The company, to be called Golar Power, will target
the delivery of cheaper, cleaner, integrated, LNG based energy solutions to new markets. Golar intends to seek additional
external capital to fund Golar Power and is currently engaged in discussions with a private equity fund to jointly develop this
company.
In order to meet these challenges and better align technical and operational activities which are based in Oslo,
the following organizational changes will take place immediately:
A) Mr Gary Smith is resigning from his position as Chief Executive and Mr Oscar Spieler who has been responsible for
the development of the Hilli project will be appointed to replace Gary as CEO. Mr. Smith who was also Golar's CEO between
March 2006 and July 2009 was re-hired as a consultant in 2014 to assist Golar in developing the LNG shipping business. He was
promoted to Chief Executive in January 2015. Mr Smith has an excellent standing within the LNG industry and has contributed
positively in the process of developing Golar into a mid-stream LNG player. The Board wish him well in the future.
Mr. Spieler was also the company's chief executive between July 2009 and June 2011. Educated as a naval
architect, Mr. Spieler has strong leadership skills and a long track record of successfully delivering advanced off shore and
shipping related projects. Mr Spieler has work experience from Bergesen, DNV and 16 years in the John Fredriksen
controlled Seatankers Group where he had several functions including Chief Executive of Frontline, Golar, Sea Production and
Sea Lift.
B) Doug Arnell who was CEO of Golar until January 2015 remains as a senior advisor to the Company and
will assist Mr. Spieler to ensure strong leadership of Golar's commercial activities. Mr. Arnell has a significant background
in LNG commercial activities through his leadership roles at companies including Enron and BG Group in addition to Golar.
Most recently he was instrumental in the successful development and structuring of the Cameroon FLNG Export Project.
C) The board has engaged Krzysztof Zielicki to structure the cooperation with
Schlumberger. Mr. Zielicki was formerly Global Head of M&A and Strategy at Rosneft. He has
a degree in quantum mechanics from the University of London and holds several post graduate diplomas. Prior to his
involvement in Rosneft he spent 25 years in BP and was also Vice President of Development at TNK-BP. He
has been involved in leading over $150 billion of acquisitions, joint ventures and divestments. Coming from Rosneft with
production of nearly 5 million barrels equivalent per day, Mr. Zielicki adds significant upstream experience to the Golar
team.
D) Eduardo Antonello will take responsibility for structuring and developing Golar Power and has been
developing the Sergipe project from inception. Mr Antonello was educated as a mechanical engineer and has previously worked
for Cargill, Schlumberger and Seadrill. At Seadrill he was responsible for establishing the company's Brazilian activities
and developing an organisation that operated 7 ultra-deepwater rigs. During this period Mr. Antonello also developed a JV with
SapuraKencana and contracted 6 pipe laying vessels with Petrobras. Mr Antonello is currently a partner in Magni Partners, a
business partnership founded by Tor Olav Troim.
The Board is confident that these organisational changes together with the additional resources and
skillsets will more clearly define responsibilities and strengthen the company's ability to successfully execute its various
projects.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning future events and Golar's operations,
performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict,
forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate",
"expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar
meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may
differ materially from those expressed or implied by such forward-looking statements.
Golar LNG Limited
Hamilton, Bermuda
10 May, 2016
HUG#2011282
