Keppel Shipyard Ltd, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd, has signed a conditional contract with Golar Hilli Corporation, a subsidiary of Golar LNG, to perform the world’s first-of-its-type conversion of an existing Moss LNG carrier, the Hilli, into a Floating Liquefaction Vessel (FLNGV), the shipbuilder confirmed.
This contract will become effective upon the fulfilment of several conditions precedent, including the receipt by Keppel Shipyard of the initial milestone payment.
“We will make a further announcement when the contract becomes effective,” Keppel said.
Golar decided to reactivate the 125,000 m2 LNG carrier Hilli, built in 1975, two years ago. The vessel was brought to Keppel Shipyard for a $15 million upgrading project.
The contract confirmation comes in the wake of Golar LNG’s common stock offering launched on 24 June, the proceeds of which will be used to finance the project.
Press Release, June 25, 2014