HAMILTON, Bermuda, April 23, 2007 (PRIME NEWSWIRE) -- Golar LNG is pleased to announce it has been awarded two time charters by Petrobras to employ Golar Winter and Golar Spirit as a floating LNG storage and regasification vessels ("FSRU"). Employment of Golar Spirit under this contract will commence during Q2 2008, Golar Winter will commence during Q2 2009. Both vessels will be modified to permit regasification of LNG prior to delivery to Petrobras. The contract duration for both vessels is 10 years with an option for Petrobras to extend for a further 5 years. The estimated contract value (excluding the option period) is approximately US$860 million.
During the last five years Golar has spent significant resources on developing Floating Storage and Regas Terminal technology. The knowledge built in this period and particularly the decision to start the conversion work for Golar Spirit without having secured firm employment put Golar in a strong position to be selected for this exciting new business.
Golar is working in close partnership with Moss Maritime to develop the technical scope for these vessel modifications. Work to modify Golar Spirit will be carried out at Keppel shipyard commencing Q4 2007, the cost of which is estimated to be in line with what has been previously reported.
Golar's CEO, Gary Smith, said we are delighted to be selected by Petrobras for these important contracts. "The winning of both tenders against strong competition is a great achievement and a clear vote of confidence in Golar's approach to this new line of business. The award of these 2 contracts will be an important foundation in Golar's growing portfolio of LNG regasification projects. We see this new business as an important element in the ongoing evaluation of optimizing shareholder value through restructuring of the Company's LNG logistic investments and projects. These contracts are likely to positively influence long term earnings and improve the opportunity to further optimize Golar's financing.
"We look forward to providing Petrobras an important part of the Brazilian energy infrastructure for at least the next decade."
Golar LNG Limited April 23, 2007 Hamilton, Bermuda