Tellurian sets aside $280m for executive bonuses

Wednesday, 02 May 2018

Gentle, a former employee of Cheniere Energy just as Tellurian chairman Charif Souki, would receive $14M after the first phase of the Driftwood project is completed, followed by three other bonuses, each of $7M, for the next three phases of development.

“The aggregate bonus pool of cash incentive awards for employees and consultants of Tellurian or its subsidiaries is up to $280 million in connection with the development of Phases 1 through 4 of the Driftwood facility pursuant to the four EPC contracts,” Tellurian in a filing to the Nasdaq stock exchange.

Lined up for big a pay-out is also Chief Operating Officer (COO) Keith Teague, whose four-installment bones payments will amount to a total of $8 million. Two other senior executives - Daniel A. Belhumeur, General Counsel and Antoine J. Lafargue, Chief Financial Officer (CFO) - could receive up to $6 million each under the bonus plans. Khaled Sharafeldin, Chief Accounting Officer, is in line for a phased smaller payment of $1.8 million.

Cash incentive awards to the company’s named executive officers are set forth in connection with the development of Phases 1 through 4 of the Driftwood LNG facility. 25% of the award allocated to any Phase of the Driftwood facility will vest and become payable on each of the first, second, third and fourth anniversaries of the date on which a notice to proceed is issued.

FID targeted for H1-2019

A FERC authorization deadline is set for January 2019, allowing Tellurian to make a final investment decision (FID) and begin construction of the Driftwood plant in the first half of 2019.

The Driftwood LNG facility will consist of six Trains and around 27 million tonnes per annum (mtpa) of output – exactly same capacity as Cheniere's Sabine Pass plant, which was developed by Tellurian Chairman Souki when he was Cheniere CEO.

Bechtel, the engineering, procurement and construction contractor for Driftwood LNG, has also made a $50 million investment in the company.