Golar LNG Limited (Golar) has announced that Golar GHK Lessors Limited (Golar GHK), a wholly owned subsidiary of the company, has entered into a sale and purchase agreement (SPA) under which a 10% interest in the total registered issued capital of Golar Hilli Corporation (Hilli) will be sold to KSI Production Pte Ltd, an indirect wholly owned subsidiary of Keppel Corporation Limited (Keppel).
In connection with the sale, Golar GHK and Golar Hilli Corporation have also entered into a Shareholders Agreement with Keppel, which will take effect upon completion that governs the relationship between the parties with respect to the conduct of the business to be undertaken by Hilli.
Under such agreement, Golar Hilli Corporation will issue cash calls on a pro rata basis to shareholders for future funding requirements for the construction, deployment, and commissioning of the world's first floating liquefaction conversion vessel (FLSV) based on an anticipated budget limit of US$ 1.3 billion including contingency.
According to Golar, the sale further strengthens and aligns the strategic interests of both Keppel and Golar and underlines Keppel's confidence in the prospects for the FLSV project. In addition Keppel's investment further strengthens Golar's balance sheet, reduces funding risks for the Hilli conversion and enables the company to position its self for future growth.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/floating-lng/05092014/golar-lng-and-keppel-sign-spa-1344/