Keppel Corporation Limited signed a conditional share subscription agreement with Golar LNG Limited and Gimi MS Corporation for the subscription of 30% of Gimi MS’s ordinary share capital. The agreement was executed through First FLNG Holdings Pte. Ltd., a Keppel holding company.
Gimi MS is expected to begin an FLNG project in the Mauritania and Senegal region. Alongside this development, Gimi MS has also secured a lease and operate agreement with BP to span two decades.
Keppel and Golar have successfully worked together in the past on the first ever FLNG conversion project, the Hilli Episeyo. The project remains an example of how cost-effective and reliable the process can be.
Exectuives from both sides indicated their optimism about working together again.
Keppel’s CEO stated, “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.”
Golar’s CEO said, “The safe and reliable performance of FLNG Hilli Episeyo is in part due to the high quality and safe workmanship of Keppel Offshore & Marine and we look forward to these same high standards being maintained throughout the construction of FLNG Gimi.”
The funding generated from the share subscription will allow Gimi MS to own the LNG carrier vessel, Gimi. Keppel Shipyard will be handling the conversion to a floating liquified natural gas (FLNG) vessel.
