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NFE strikes deal with Golar LNG on sale

of entire stake in Hilli Episeyo FLNG

CAMEROON US-BASED New Fortress Energy (NFE) “Golar has been a meaningful partner for
reported on February 6 that it had struck an the past several years, and we have appreciated
The Hilli Episeyo agreement with Bermuda-registered Golar LNG the opportunities to collaborate with them as
processes natural gas on the sale of its entire stake in the Hilli Episeyo, we continue to advance NFE’s mission to bring
from Sanaga, a field a floating LNG (FLNG) vessel operating offshore more affordable, reliable and cleaner energy to
offshore Cameroon that Cameroon. customers around the world.”
is being developed by In a statement, NFE explained that the agree- Karl Fredrik Staubo, the CEO of Golar LNG,
Perenco (Norway) and ment provided for Golar LNG to return 4.1mn also expressed satisfaction with the deal. “Today’s
Société Nationale des NFE shares and pay $100mn in cash in exchange announced transaction increases Golar’s portion
Hydrocarbures (SNH). for all of NFE’s equity in the FLNG unit, which of cash flow generation from [the] Hilli’s exist-
is capable of turning out 2.4mn tonnes per year ing contract until July 2026,” he said. “We have
(tpy) of LNG. enjoyed the collaborative relationship with NFE
Under this arrangement, the number of NFE and look forward to observing their contin-
shares outstanding will come down to around ued contribution to expanding the global LNG
204.7mn and NFE will shed $323mn in debt market.”
obligations stemming from its equity stake in The Hilli Episeyo processes natural gas from
the Hilli Episeyo, the statement said. Sanaga, a field offshore Cameroon that is being
Wes Edens, the chairman and CEO of NFE, developed by Perenco (Norway) and Société
said the deal would benefit both parties. “With Nationale des Hydrocarbures (SNH), the
this transaction, we will sell our minority inter- national oil company (NOC). The partners pipe
est in the Hilli in exchange for 4.1mn shares of production from the field to an onshore treat-
NFE and $100mn in cash,” he commented. “We ment facility for processing before delivering it
believe this is a fair economic result for both our- to the FLNG.
selves and Golar.” According to previous reports, the Hilli
He went on to say that the divestment of the Episeyo is the first vessel in the world to be con-
stake was in line with NFE’s long-term business verted to an FLNG unit. The ship began its life as
strategy. “Furthermore, from a strategic perspec- one of Golar LNG’s 125,000-cubic metre tankers
tive, it will allow us to focus solely on our own and was converted to an FLNG unit at the Kep-
FLNG portfolio that we own 100% of as well as pel shipyards in Singapore at a cost of $1.2bn. It
buy back NFE stock at an attractive valuation,” is anchored near the Cameroonian port of Kribi
Edens stated. and has been in operation since May 2018. ™

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