Golar reaches terms for Equatorial Guinea FLNG

Golar LNG signed a binding heads of terms with Ophir Energy PLC for provision of the Golar floating LNG (FLNG) vessel Gimi. Ophir’s Equatorial Guinea Block R upstream partner GEPetrol approved the terms and will formally ratify them next week. The agreement will be structured as a 20-year tolling contract, starting commercial operations first-half 2019.

Gimi is Golar’s second FLNG vessel following Hilli, which is scheduled to begin commercial operations off Cameroon first-half 2017. Golar with its partners Keppel Shipyard and Black & Veatch committed to the Gimi FLNG conversion last year (OGJ Online, Jan. 5, 2015). Gimi will use the same configuration of utilities and liquefaction plant as Hilli, with variations to accommodate production direct from the deepwater Block R reservoir.

At full production Gimi will have a contracted capacity of 2.2 million tonnes/year of LNG, to be marketed by Ophir and GEPetrol. Block R has 2.5 tcf of high-purity proved and probable natural gas in an area of benign sea states, Golar said.

The integrated Ophir-GEPetrol-Golar project is expected to make a first-half 2016 final investment decision, following completion of its upstream front-end engineering and design study.