Golar Keeps On Selling

first_imgzoom Golar LNG Limited  has agreed to sell its ownership interests in the companies that will own and operate the floating storage and regasification unit (FSRU) Golar Eskimo to Golar LNG Partners L.P. for a price of USD 390 million. The transaction is expected to be finalized in January 2015.The deal is financed with cash on hand, the proceeds of aUSD 220 million loan from Golar LNG Limited and the assumption of outstanding bank debt in respect of the Golar Eskimo on the closing date of the acquisition (approximately USD 162.8 million).Part of the agreement with Golar Partners is for Golar LNG to retain the right to use the FSRU and to charter the vessel to a third party starting in January 2015 and ending in June 2015, with hires received during this period belonging to Golar LNG. In return for this, the company will pay Golar Partners USD 22 million to be paid in equal monthly instalments starting in January 2015.This transaction is the sixth dropdown of assets to Golar Partners since its IPO in April 2011.Back in August 2013, Golar LNG Limited agreed to charter Golar Eskimo to the Government of the Hashemite Kingdom of Jordan. The FSRU Golar Eskimo will be moored at a purpose built structure that is to be constructed by the Aqaba Development Corporation off the Red Sea port of Aqaba. Capable of storing 160,000 cubic metres of LNG and delivering up to 500 MMSCFD with a peaking capacity of 750 MMSCFD, the FSRU will connect to the Jordan Gas Transmission Pipeline that delivers natural gas to power plants throughout the Kingdom.Earnings under the ten year contract are due to commence during the first quarter of 2015.The Jordan government has the option to terminate the time charter after year five, subject to payment of an early termination fee.last_img read more