Bermuda: Golar LNG Announces FSRU Contract Extension with Petrobras

Bermuda - Golar LNG Announces FSRU Contract Extension with Petrobras

Golar LNG Partners LP announces today that it has reached agreement with Petrobras to make certain modifications to the Golar Winter floating storage and regasification unit (“FSRU”) and to extend the term of the contract by 5 years to 2024.

Petrobras have taken the decision to move the Golar Winter FSRU from its present site in Rio de Janeiro to Bahia and as a consequence the vessel will require certain modifications including the addition of LNG loading arms. Golar Partners has agreed to make these modifications and Petrobras have agreed to an increase in the charter rate in return for the upgrades to be made to the vessel.

In addition to the 5 year extension, Golar Partners will receive, in nominal terms, approximately $24 million in additional revenue over the term of the contract before the effect of rate escalation as provided for in the time charter.

The vessel is due to be delivered at its new site in the third quarter 2013 at which point the new charter rate will commence. The vessel is expected to incur offhire time of approximately the same amount as would be incurred during its normal five yearly drydocking, which will be undertaken at the same time. Golar Partners will enter into an agreement with Golar LNG Limited under which Golar LNG Limited will undertake the modification work.

Golar Partners will finance the modification work with cash and undrawn credit facilities but may also take the commitment into account in future debt or equity transactions.

This contract extension increases the Partnerships average contract term to approximately 9.2 years which is increased from an approximate 8.2 year average as at December 31, 2011, and will provide significant stability of cash flow in the longer term.

Golar LNG Partners total contracted revenue backlog will increase to $1.9 billion.

World Maritime News Staff, January 19, 2012; Image: Keppel Corporation

 

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2016 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

TOC Europe 2016

The events now have a renewed focus on supply chain making them the premier business and networking event for the stakeholders within…

read more >

7th Annual International Port Security Conference

The SMi Group announces the 7th annual International Port Security Conference. The event will be held in London on the 1st and 2nd of June 2016.

The conference aims to bring together key decision makers in the industry to discuss modern methods of port security and provide effective learning experiences for all delegates through the carefully selected expert speaker line up.

Interacting with delegates from across the globe and hearing from industry leading experts will ensure delegates are up-to-date with high priority information that enables you to best secure your seaports, civilians and means of trade.

Topics to be discussed include terrorism, cyber terrorism, emergency intervention procedures, optimising technology use in security checks and case studies featuring some of the largest ports across the world. Our diverse range of topics will allow delegates to learn best practices for port security and understand further how other ports are resolving core challenges.

More info

read more >

CLIA Cruise360 – A Panoramic View to Cruising

Developed and hosted by Cruise Lines International Association (CLIA), Cruise360 offers a truly panoramic view of the cruise industry…

read more >

Posidonia 2016

Posidonia is a firm fixture for the global shipping industry. Every two years it is the essential place for serious business at the largest…

read more >