Golar wins Tortue Ahmeyim FLNG deal with BP. Keppel to build the unit

Oil and gas major BP has awarded Golar LNG a contract for an FLNG unit to be deployed at the Greater Tortue Ahmeyim project offshore Senegal and Mauritania.

Tortue Ahmeyim FLNG illustration. Image source: BP

Golar LNG had previously been given Limited Notice to Proceed with Tortue FLNG ahead of the Final Investment Decision which was made on December 21, 2018. Golar has confirmed the firm charter contract was awarded to its subsidiary Gimi MS on Tuesday.

“Golar LNG Limited announces today that Gimi MS Corporation, 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,” Golar LNG said.

Expected to start 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 aa nearshore hub located on the Mauritania and Senegal maritime border.

The floating unit 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.

Construction of FLNG Gimi will cost $1.3 billion and will take around four years. The FLNG will be converted from the LNG Carrier Gimi by Keppel in Singapore. Conversion works are expected to start soon, Golar LNG said.

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.”

Worth noting, Singapore’s Keppel has agreed to subscribe for 30% interest in Gimi MS.

Keppel and Golar have previously partnered on the FLNG Hilli Episeyo, the world’s first FLNG conversion project, deployed offshore Cameroon.

According to Keppel, Hilli Episeyo has maintained 100% uptime since starting commercial operations in June 2018.

 Loh Chin Hua, CEO of Keppel Corporation said: “We are pleased to further strengthen Keppel’s relationship with Golar in capturing growing opportunities in the LNG space. This transaction reflects Keppel’s confidence in the prospects of the FLNG sector and that this investment will provide attractive risk-adjusted returns.

“Our investment is in line with Keppel’s business model and harnesses the diverse capabilities of the Group. We are pleased that Keppel Offshore & Marine has been chosen to execute this important project, which will further strengthen our capabilities and track record in the conversion of FLNG vessels.




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