FLNG Gimi Force Majeure claim
April 07 2020 - 8:45AM
Gimi MS Corp. (the “Company”), a subsidiary of
Golar LNG Ltd (Nasdaq: GLNG), received written notification of a
force majeure claim (the “Notice”) from BP Mauritania Investments
Ltd (“BP”) under the Lease and Operate Agreement, dated February
26, 2019, between the Company and BP (the “Agreement”), relating to
the Greater Tortue Ahmeyim project.
The Notice received from BP claims that due to
the recent outbreak of the novel coronavirus (COVID-19) around the
globe, BP is not able to be ready to receive the floating liquefied
natural gas facility “GIMI” on the target connection date in
2022.
BP estimates at this stage that the
consequential delay caused by the claimed force majeure event is in
the order of one year and that it is not currently possible to
mitigate or shorten this delay. Golar has asked BP to clarify how a
force majeure event discovered as recently as the end of March 2020
could immediately impact the schedule by an estimated one
year.
Based on the information received as of today
the Company is engaging in clarification and an active dialogue
with BP to establish the duration of the delay and the extent to
which this has been caused by the claimed force majeure event.
However, in anticipation of a potential delay, the Company has
commenced discussions with its main building contractor, Keppel
Shipyard Limited (“Keppel”), to re-schedule activities in order to
reduce and reprofile its capital spending commitments for 2020 and
2021.
The Company is evaluating the Notice and
reserves all of its rights under the Agreement.
Hamilton, Bermuda
April 7, 2020
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan
Golar LNG (NASDAQ:GLNG)
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