Page 10 - AfrOil Week 30 2021

AfrOil PERFORMANCE AfrOil

These payments covered all the arrears owed to NNPC, began negotiating payments on the
MPN, it said. However, it also stated that NNPC overdue cash calls after President Muhammadu
still owed $917.2mn to SPDC, $297.23mn to Buhari took office in 2015. The negotiations
NAOC, $215.58mn to TEPNG and $34.78mn resulted in an agreement that reduced the total
to CNL. amount owed by around $1.7bn, and NNPC
Nigeria’s federal government, along with began paying the balance down in 2017. ™

Perenco, SNH, Golar LNG strike a

deal on increasing gas deliveries

CAMEROON PERENCO (UK/France) and Société Nationale Karl Fredrik Staubo, the CEO of Golar LNG,
des Hydrocarbures (SNH), the national oil com- described the agreement as satisfactory. “We are
pany (NOC) of Cameroon, have arranged to pleased to announce increased capacity utilisa-
increase the total volume of natural gas delivered tion of our FLNG Hilli, unlocking embedded
to the Hilli Episeyo, a floating LNG (FLNG) ves- value to our shareholders by utilising more of
sel owned by Bermuda-registered Golar LNG. Hilli’s 2.4mn tonnes [per year] of liquefaction
According to a statement from Golar LNG, capacity,” he commented. “The innovative toll-
the parties struck a deal last week that provides ing fee arrangement delivers on our announced
for Perenco and SNH to deliver additional gas strategy to increase our upstream LNG and gas
in quantities sufficient to boost the FLNG’s exposure. Today’s announcement is a further
production capacity to 1.4mn tonnes per year testimony to Hilli’s strong track record of 100%
in 2022. This would represent a rise of 16.67% commercial uptime since delivery in 2018, and
on the vessel’s current capacity of 1.2mn tpy. It will benefit all stakeholders involved in the pro-
would also require the use of the FLNG’s second ject, as well as bringing us closer to our target [of
production train, since the companies have only reaching] full capacity utilisation of Hilli.”
been using the first of the vessel’s two 1.2mn tpy The Hilli Episeyo is the first vessel in the
trains to date. world to be converted to an FLNG unit. Accord-
The statement noted that Perenco and SNH ing to previous reports, it began its life as one of
would drill and appraise two or three new incre- Golar LNG’s 125,000 cubic metre tankers and
mental wells in 2021 and then upgrade upstream was converted to an FLNG unit at the Keppel
production facilities in 2022. These operations shipyards in Singapore at a cost of $1.2bn. It is
will allow the producers to sustain higher output anchored near the Cameroonian port of Kribi
levels into 2023 and beyond, it said. and has been in operation since May 2018.
Additionally, Golar LNG reported that the The vessel liquefies gas from the Sanaga
agreement between the parties gave SNH and field, which is being developed by Perenco and
Perenco the option to expand the FLNG unit’s SNH. The partners pipe gas from the field to an
production capacity by another 400,000 tpy onshore treatment facility for processing before
beginning in 2023. This option will remain in delivering it to the FLNG vessel, which operates
place until the term of the current contract ends under an agreement that generates about $40mn
in 2026, it said. per quarter in tolling revenues. ™

The Hilli Episeyo FLNG vessel can turn out 2,4mn tpy of LNG (Photo: SMV)

P10 www. NEWSBASE .com Week 30 28•July•2021