Golar LNG wins Petrobras contracts worth $860M

Tuesday, 24 April 2007

The chartering of "Golar Spirit" as an FSRU will commence during the second quarter of 2008 and "Golar Winter" will go into service for Petrobras during the second quarter of 2009.

Both vessels will be modified to permit regasification of LNG prior to delivery to Petrobras, a statement said.

The contract duration for both vessels will be 10 years with an option for Petrobras to extend for a further five years.

During the last five years Golar said it had has spent significant resources on developing Floating Storage and Regas Terminal technology.

The knowledge built in this period and particularly the decision to start the conversion work for "Golar Spirit" without having secured firm employment put Golar in a strong position to be selected.

Golar is working in close partnership with Moss Maritime to develop the technical scope for these vessel modifications.

Work to modify "Golar Spirit" will be carried out at Keppel Shipyard in Singapore in the fourth quarter of this year.

"The winning of both tenders against strong competition is a great achievement and a clear vote of confidence in Golar’s approach to this new line of business," said Golar Chief Executive Gary Smith.

"The award of these two contracts will be an important foundation in Golar’s growing portfolio of LNG regasification projects. We see this new business as an important element in the ongoing evaluation of optimizing shareholder value through restructuring of the company’s LNG logistic investments and projects," Smith added.