Golar LNG Limited announced the sale of an interest in the FLNG, Hilli Episeyo
Golar LNG Limited and affiliates of Keppel Shipyard Limited and Black and Veatch have entered into a purchase and sale agreement (the "PSA") for the sale of equity interests in Golar Hilli LLC to Golar LNG Partners L.P., which will, on the closing date of the Sale, indirectly own the Hilli Episeyo, a floating liquefied natural gas vessel, the company announces in its press release. The Acquired Interests represent the equivalent of 50% of the two liquefaction trains, out of a total of four, that have been contracted to Perenco Cameroon SA and Societe Nationale Des Hydrocarbures for an eight-year term. The sale price for the Interests, as described below, is $658 million less net lease obligations under the financing facility for the Hilli (the "Hilli Facility") that are expected to be between $468 and $480 million.
Concurrent with the execution of the PSA, the Partnership paid a $70 million deposit to Golar, on which the Partnership will receive interest at a rate of 5% per annum.
The closing of the Sale is subject to the satisfaction of certain closing conditions which include, among others, receiving the consent of the lenders under the Hilli Facility, the closing of the previously announced put-sale closing with respect to the Golar Tundra (the "Tundra Put Sale"), the delivery to and acceptance by the Customer of the Hilli, the commencement of commercial operations under the liquefaction tolling agreement (the "LTA") and the formation of Golar Hilli LLC and the related Pre-Closing Contributions as described further below.
Upon the closing, which is expected to occur on or before April 30, 2018, Golar, Keppel and B&V will sell 50% of the Common Units to the Partnership in return for the payment of the net purchase price of between approximately $178 and $190 million. The Partnership will apply the $107 million deferred purchase price receivable from Golar in connection with the Tundra Put Sale and the $70 million deposit referred to above against the net purchase price and will pay the balance with cash on hand.
