Golar LNG and bp have agreed on a commercial reset for the FLNG Gimi, part of the Greater Tortue Ahmeyim project offshore Mauritania and Senegal. This agreement simplifies cash flows, resolves disputes, and expedites commissioning. With key milestones met, including FPSO installation and Hub Terminal operationalization, the project aims for first LNG production in Q4 2024 with the Gimi’s commissioning cargo expected later this month.
Golar LNG and bp have reached an agreement to implement a commercial reset for the FLNG Gimi, the vital FLNG component of the Greater Tortue Ahmeyim (GTA) project offshore Mauritania and Senegal, according to a NASDAQ news update.
It settles all ongoing disputes, including an arbitration process, realigning the parties' focus towards reaching commercial operations.
More cash
This new arrangement simplifies contractual cash flows and resolves previous disputes regarding pre-commercial operations date (Pre-COD) payment mechanisms, including step-up mechanisms based on project milestones. Additionally, Golar will be eligible for lump sum bonus payments.
Expedited schedule
To expedite the timeline, the partners have also agreed to begin commissioning the FLNG Gimi with an LNG cargo before gas is available from the FPSO.
This reset marks a significant step forward for the project, resolving past issues and establishing a clear path towards operational status for the FLNG Gimi.
Milestones met
In June, the project’s Floating Production Storage and Offloading (FPSO) vessel arrived and was installed at its designated location whilst the Hub Terminal was also successfully transferred to operational status.
Concurrently, completion of the project’s subsea infrastructure is progressing as planned, with final connection work currently underway, project partner Kosmos Energy informed.
Mechanical completion for first gas from the FPSO is anticipated to be achieved in August, with the handover to operations to operator bp scheduled for September.
Pre-commissioning cargo
Concurrently, the FLNG unit is slated to receive its pre-commissioning cargo by the end of August, which will accelerate the cool-down of the vessel.
These steps position the project to achieve first LNG production in the fourth quarter of 2024, according to Kosmos.
Important discovery
Kosmos Energy made the groundbreaking GTA discovery in 2015, unearthing a substantial natural gas reservoir off the coasts of Mauritania and Senegal, thereby establishing a significant new hydrocarbon province.
The pioneering offshore hydrocarbons player subsequently partnered with oil major bp to develop the GTA hydrocarbons play in association with the national oil companies of Mauritania and Senegal.
Strategic Importance
The project reached a crucial milestone in December 2018 with the Final Investment Decision for Phase 1.
Its significance was further emphasised in July 2021 when the presidents of both Mauritania and Senegal designated it a National Project of Strategic Importance.
Straddling the maritime border of the two countries, in depths approaching 3km, the GTA project aims to exploit a gas field with a 30-year production potential, according to Kosmos Energy.
Kosmos highlights its project stands out as one of the most cost-effective greenfield projects globally, with its initial phase projected to yield approximately 2.5mmtpa of natural gas.
However, the project partners believe GTA represents only a fraction of the region’s vast potential.
The extensive acreage offshore Mauritania and Senegal is thought to harbour between 50-100 trillion cubic feet of gas resource potential, with GTA alone estimated to contain over 15 trillion cubic feet of potentially recoverable gas resources.
