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Golar’s floating liquefied natural gas project off Cameroon has just secured final approval by the parties at the Gas Convention.
Golar Hilli Corporation and Golar Cameroon executed a fully effective and binding Gas Convention with the Republic of Cameroon, which endorses and governs the installation and operation of the GoFLNG vessel in the southern seaside city of Kribi. Orrick advised Golar leading their investment of $1.3 billion to convert the “LNG Hilli” into a natural gas liquefaction facility.
It is anticipated that the allocated reserves will be produced at a rate of 1.2 million tons of LNG per annum, representing approximately 50% of the vessel’s nameplate production capacity, over an approximate eight year period. It is expected that production will commence in the second quarter of 2017.
This project in Cameroon is expected to deliver an EBITDA for Golar in the range of $170 to $300 million in the first full year of operation.
According to Golar’s CEO, Gary Smith, “the employment of this first speculatively ordered FLNG unit and the approval for development of the Kribi field sets a new standard for development of gas reserves. Golar’s GoFLNG business model reduces the resource holder’s capex and project execution risk, advances their cash flow and is flexible enough to develop smaller reserves.”