OSLO, Norway, July 19, 2001 (PRIMEZONE) -- The Board of Golar LNG (OSE:GOL) has entered into two more firm contracts for building of LNG carriers. One ship, a 138,000 m3 GT design ship, is contracted with Daewoo for delivery March 2004, while one 137,000 m3 Moss design has been signed with Hyundai for delivery in July 2004. The ships have been contracted at highly competitive prices.
Together with the two ships already ordered this brings Golar LNG's portfolio of newbuildings up to totally 4 ships. Golar LNG has in addition several options for further newbuildings for delivery in 2004, 2005 and 2006.
The initial installments for the newbuildings will be financed through the company's cash positions and short term financing facilities. The Board is currently considering different employment opportunities for the ships. This includes specific discussion about long-term deals, as well as short charter agreements with or without exposure to the future development in gas price. The long-term financing of the newbuildings will depend on what kind of employment strategy the Board decides upon.
Chairman of Golar LNG, John Fredriksen, says in a comment, "We are pleased to have secured two additional firm newbuilding contracts. There is currently a significant development of firm and potential LNG facilities. It is likely that availability of ships can be a constraint in the next five-year period. Golar's strategy is to use the four ships, including the options the company controls, to conclude strategic deals that can give us a strong long-term position in the market for trading of LNG. Such transactions can ultimately be deals where the ships will be utilized in Golar's own trading program done independently or in partnership with gas producers, terminal owners or utility companies."
Golar LNG is also pleased to announce that Sveinung J. Stoehle has been employed as Executive Vice President with responsibility for commercial activities. Mr. Stoehle's 42 years comes from a position as General Manager in Nigeria LNG. Stoehle, who has a first class reputation in the LNG market, has been employed within the Elf system since 1984 and has in depth experience from the market for production and trading of LNG.
Graeme MacDonald has been promoted to Managing Director of Golar LNG's wholly owned subsidiary Golar Management Ltd. MacDonald has been employed in Osprey Maritime since 1998 and was with Shell before.
Golar Management Ltd. will be transformed into a Fleet Management Organization, with responsibility to deliver a first class management function to the Owners of the vessels it manages, and to the charterers of Golar LNG vessels. The organization, which counts totally 29 people, will also be given the responsibility for supervision of the newbuildings, and for development of new technical designs and solutions. The latter is a very important part of Golar's future strategy.
Peter Costalas, who has been CEO of Osprey Maritime Ltd. and also a director of Golar LNG, has decided to leave the Group in the end of July. Costalas has managed the transition from Osprey Maritime into Golar LNG. This function is now fulfilled, and the Board accepts his resignation and wishes him well in the future.
The Board has in connection with the establishment of the organization awarded 400,000 options on Golar LNG shares. The options are awarded as a part of the 2,000,000 authorization described in the listing memorandum. The strike price is USD 5.75. Chairman John Fredriksen has been awarded 200,000 options while CEO Tor Olav Troim has been awarded 100,000 options.
The Board has started to work with American investment banks with the target of taking Golar NLG public in New York within the fourth quarter 2001.