Golar LNG Limited ("Golar" or "the Company") (NASDAQ: GLNG) announces today that Gimi MS Corporation ("Gimi
MS"), a newly incorporated subsidiary of the Company, has entered into a 20-year Lease and Operate Agreement ("LOA") with BP for
the charter of an FLNG unit, Gimi, to service the Greater Tortue Ahmeyim project.
Expected to commence production in 2022, the FLNG Unit Gimi will liquefy gas as part of the first phase
of the Greater Tortue Ahmeyim project and be located at an innovative nearshore hub located on the Mauritania and Senegal maritime
border. FLNG Gimi is designed to produce an average of approximately 2.5 million tonnes of LNG per annum, using the Black &
Veatch "Prico" liquefaction process, with the total gas resources in the field estimated to be around 15 trillion cubic feet.
Concurrent with its entry into the LOA, Gimi MS has entered into a Subscription Agreement (subject to closing
conditions) with First FLNG Holdings Pte. Ltd., an indirect wholly-owned subsidiary of Keppel Capital, in respect of their
participation in a 30% share of FLNG Gimi. Gimi MS will construct, own and operate FLNG Gimi and First FLNG
Holdings Pte. Ltd. will subscribe for 30% of the total issued ordinary share capital of Gimi MS for a subscription price equivalent
to 30% of the project cost. LNG carrier Gimi has been relocated from layup to Keppel Shipyard in Singapore where conversion
works are expected to commence soon.
Construction of FLNG Gimi is expected to cost approximately $1.3 billion, excluding financing costs. Once
accepted under the contract, annual earnings before interest, tax, depreciation and amortization of approximately $215 million with
potential upside for over performance are expected. Golar is also in the final stages of receiving an underwritten credit
commitment for a $700 million long-term financing facility from a syndicate of international banks that will be available during
construction. Golar's plan is that together with other financing facilities, by the end of the 4-year construction period the
anticipated maximum total equity contribution from the Company in respect of its 70% stake will be approximately $300 million.
Commenting on the LOA, 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. 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".
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;
- 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;
- 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
February 26, 2019
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan
