Brazil’s Petrobras has terminated its contract for the Golar Spirit floating storage and regasification unit (FSRU) one year early, according to Golar LNG.
Image from Golar LNG.
Golar LNG confirmed it received a notice for early termination for the FSRU, which is now scheduled to end on 21 June 2017. The original end date of the charter was August 2018.
According to the terms of the charter agreement, Petrobras will pay Golar LNG a compensation fee as a result of the early termination representing approximately 62% of the EBITDA remaining under the contract from 21 June 2017 to the original contract end date, according to Golar LNG.
Golar LNG said it will immediately start re-marketing the vessel for FSRU employment post June 2017.
“There is currently significant interest and bidding activity in the FSRU market and also a limited number of FSRUs available for the next two years. Golar Spirit, as a relatively small capacity FSRU could be well suited for a number of emerging smaller scale FSRU projects as well as a potential bridging solution for larger projects,” the company said in a statement.