LNG Company Golar LNG and multinational energy corporation bp have signed a new agreement to simplify and reset the commercial terms for FLNG Gimi.
Under the new terms, Golar LNG and bp have established a clear schedule for daily payments leading up to the Commercial Operations Date (COD). These payments will increase based on project milestones and are guaranteed by specific deadlines.
Golar LNG will also receive bonus payments if certain milestones are met. These payments, recorded as pre-commercial operations date cash flows, will be deferred on Golar LNGs balance sheet and amortized over the 20-year contract term starting from COD.
The agreement resolves previous disputes and streamlines payment processes for the project.
To expedite the process, Golar and bp have agreed to comissiong FLNG Gimi with an LNG cargo before gas from the Floating Production Storage and Offloading (FPSO) unit becomes available.
