Golar, Schlumberger joint venture targets stranded gas

Golar LNG Ltd. and Schlumberger Ltd. have formed joint-venture OneLNG in an effort to rapidly develop low-cost gas reserves to LNG.

Golar LNG Ltd. and Schlumberger Ltd. have formed joint-venture OneLNG in an effort to rapidly develop low-cost gas reserves to LNG. The companies say that the combination of Schlumberger’s reservoir knowledge, wellbore technologies, and production management capabilities, with Golar’s low-cost floating LNG (FLNG) approach, will offer gas resource owners faster and lower-cost development, increasing resources’ net present value.

Golar owns 51% of the joint venture and Schlumberger 49%. The companies made an initial commitment covering investment to develop the joint venture’s first project. They will discuss additional debt capital as required on a project-by-project basis.

After reviewing current market opportunities and describing 40% of the world’s gas reserves as stranded, the companies expect to conclude five projects within the next 5 years.

Golar last year signed a binding heads of terms with Ophir Energy PLC to supply FLNG vessel Gimi for use in developing Equatorial Guinea Block R. Gimi is Golar’s second FLNG vessel following Hilli, which is scheduled to begin commercial operations off Cameroon first-half 2017 (OGJ Online, May 6, 2015).

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