Marine Link
Saturday, November 18, 2017

Golar LNG Partners in FLNG Hilli Episeyo Stake Acquisition

August 17, 2017

Photo: Golar LNG Partners

Photo: Golar LNG Partners

 Golar LNG Partners announced that it has entered into a purchase and sale for the acquisition from Golar LNG Limited and affiliates of Keppel Shipyard and Black and Veatch of equity interests in Golar Hilli LLC, which will, on the closing date of the Acquisition, indirectly own the FLNG, Hilli Episeyo.  

 
The Acquired Interests represent the equivalent of  50% of the two liquefaction trains, out of a total of four, that have been contracted to Perenco Cameroon SA and Societe Nationale Des Hydrocarbures for an eight-year term. 
 
The purchase price for the Acquired Interests, as described below, is $658 million less net lease obligations under the financing facility for the Hilli that are expected to be between $468 and $480 million.  Concurrently with the execution of the PSA, the Partnership paid a $70 million deposit to Golar, upon which it will receive interest at a rate of 5% per annum.  
 
The closing of the Acquisition is subject to the satisfaction of certain closing conditions which include, among others, receiving the consent of the lenders under the Hilli Facility, the closing of the previously announced Put-Sale Closing with respect to the Golar Tundra,  the delivery to and acceptance by the Customer of the Hilli, the commencement of commercial operations under the liquefaction tolling agreement and the formation of Golar Hilli LLC and the related Pre-Closing Contributions as described further below.
 
The Acquisition is expected to be an accretive transaction and is consistent with the Partnership's growth strategy, as it increases the diversity of the Partnership's fleet and contracted cash flow.
 
The Partnership's management does not intend to recommend to the Board an increase in the Partnership's quarterly cash distribution as a result of this transaction.
 
The Acquisition is expected to add significantly to the Partnership's revenue backlog. It will also further diversify the Partnership's revenue streams as well as help offset the Partnership's recontracting risk related to the vessels that come off contract in 2017. The acquisition will also give significant support to distributions going forward.  
 
Maritime Reporter Magazine Cover Nov 2017 - The Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News