Golar LNG agreed to acquire New Fortress Energy's (NFE) ownership stake in FLNG Hilli in exchange for Golar's remaining 4.1 million shares in NFE and $100 million in cash.
Golar will also take over approximately $323 million in debt obligations linked to Hilli. Under the terms of the deal, Golar will acquire the 50% interest in Trains 1 and 2 of FLNG Hilli, currently owned by a subsidiary of NFE. Golar will have no remaining stake in NFE following the transaction.
FLNG Hilli (Hilli Episeyo) is currently located offshore Kribi, Cameroon. Its customers are oil and gas company Perenco and Cameroon’s national oil firm, Société Nationale des Hydrocarbures (SNH). The vessel, Africa's first FLNG in operation and the world’s first converted FLNG, started operations in 2018.
Golar CEO Karl Fredrik Staubo said: "Today's announced transaction increases Golar's portion of cash flow generation from Hilli's existing contract ending in July 2026. Improved market fundamentals for liquefaction capacity and Hilli's market leading operational track record supports increased utilization and earnings potential of Hilli upon re- contracting.
"The transaction continues our company simplification, reducing our investments in listed securities whilst unifying the ownership of the FLNG Hilli. "We have enjoyed the collaborative relationship with NFE and look forward to observing their continued contribution to expanding the global LNG market through technical solutions complementary to Golar's business."
Wes Edens, Chairman and CEO of New Fortress Energy said "From a strategic perspective, the transaction allows us to focus solely on our own FLNG portfolio that we own 100 percent of as well as buy back NFE stock at an attractive valuation. Golar has been a meaningful partner for the past several years and we have appreciated the opportunities to collaborate with them as we continue to advance NFE's mission to bring more affordable, reliable and cleaner energy to customers around the world."