Golar LNG Ltd and Schlumberger have announced the creation of a new joint venture (JV) to rapidly develop low cost gas reserves to LNG.
OneLNGSM – a combination of Schlumberger reservoir knowledge, wellbore technologies and production management capabilities, alongside Golar's low cost floating LNG (FLNG) solution - will offer gas resource owners a fast and low cost development.
Golar and Schlumberger have 51/49 ownership of the JV. The companies have agreed an initial investment commitment to cover the estimated equity needed to develop the first project. They will also discuss additional debt capital as required, on a project-by-project basis. This future financing will take into account Golar's FLNG intellectual property through an equitable contribution mechanism to be agreed between the parties.
A statement from Golar LNG said that OneLNG will be “the exclusive vehicle for all projects that involve the conversion of natural gas to LNG which require both Schlumberger Production Management services and Golar's FLNG expertise.” Both Golar LNG and Schlumberger are confident that it would conclude five projects within the next five years.
Golar Vice Chairman, Tor Olav Troim, said: "Our new venture with Schlumberger provides a powerful union of their oilfield services technology and production management business, and our low cost FLNG solution. It leverages Golar's LNG expertise, and builds upon our industry leading position as a midstream solutions provider."
Schlumberger, President Operations, Patrick Schorn, said: "This new joint venture is uniquely positioned to optimise the development of low cost gas reserves. The technology platform and production management capability that Schlumberger brings will enable a total system approach, leading to a simpler and fast-tracked FID process, and reliable operational execution for the benefit of the gas resource owners."
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/25072016/golar-and-schlumberger-form-onelng-joint-venture-2813/