Keppel inks agreement with Golar to subscribe for 30% interest in Gimi MS Corporation
Keppel Corporation Limited has through First FLNG Holdings Pte. Ltd. ("FFH"), an indirect wholly-owned subsidiary of the Company held through Keppel Capital Holdings Pte. Ltd., entered into a conditional share subscription agreement1 with Golar LNG Limited ("Golar") and Gimi MS Corporation ("Gimi MS") to subscribe for 30% of the total issued ordinary share capital of Gimi MS.
Gimi MS will undertake the development, construction and operation of a floating liquefied natural gas (FLNG) facility to be located on the Mauritania and Senegal maritime border. Concurrent to the share subscription agreement, Gimi MS has also executed a 20-year FLNG lease and operate agreement with BP.
Keppel and Golar have previously partnered on the FLNG Hilli Episeyo, the world's first FLNG conversion project, which has been a successful proof of concept as a quick and cost-efficient solution for monetising stranded gas reserves. Hilli Episeyo has maintained 100% uptime since commencing commercial operations in June 2018 and consistently despatched two LNG cargoes each month.
With the funds from the subscription of shares by its shareholders, Gimi MS will acquire and own the Moss LNG carrier Gimi which will be converted into an FLNG vessel by Keppel Shipyard. In December 2018, Keppel Shipyard received the limited notice to proceed from Golar to commence early conversion works. The carrier has been relocated from layup to Keppel Shipyard in Singapore where conversion works will soon start.
On completion of the subscription, FFH will enter into a shareholders' deed with Golar and Gimi MS. Under the terms of the shareholders' deed, Gimi MS may issue cash calls on a pro rata basis to the shareholders, namely FFH and Golar, for future funding requirements for the construction, deployment and commissioning of Gimi based on an anticipated project budget limit of approximately US$1.3 billion exclusive of financing costs. FFH is committed to invest up to an estimated maximum total of US$250 million in connection with the Project inclusive of the subscription price.
The Company will make a further announcement upon completion of the subscription.
About Keppel Corporation
Keppel Corporation is a global multi-business company committed to providing robust solutions for sustainable urbanisation through its key businesses in Offshore & Marine, Property, Infrastructure and Investments. The Group's ecosystem of companies work closely together to offer a spectrum of products and services that addresses the world's growing needs for energy, clean environments, urban living solutions and connectivity.
Keppel Corporation harnesses the Group's collective strengths in technology and innovation, engineering and project management, the operation and maintenance of assets, and capital management to seize opportunities and create enduring value.