Golar LNG Limited ("Golar") is pleased to announce today that Southern Energy
S.A. ("SESA") has reached Final Investment Decision for the charter of Golar's
3.5MTPA MK II FLNG, as contemplated under the terms of the definitive agreements
executed by SESA and Golar in May 2025.
The key commercial terms for the 20-year charter agreement include net charter
hire to Golar of US$ 400 million per year, plus a commodity linked tariff
component of 25% of FOB prices in excess of US$ 8/mmbtu. The FLNG, currently
under conversion in China, will sail to Argentina following her redelivery, with
contract start-up expected during 2028. The MKII FLNG will be moored in the San
Matías Gulf near the FLNG Hilli, which is expected to start its 20-year charter
with SESA during 2027. Combined, the two units have a nameplate capacity of
5.95MTPA, and the project expects to benefit from significant operational
efficiencies and synergies from two FLNGs in the same area.
SESA is a company formed to enable LNG exports from Argentina. SESA is owned by
a consortium of leading Argentinian gas producers including Pan American Energy
(30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%), as well as Golar
(10%).
The MKII FLNG project remains subject to regulatory conditions precedent and
satisfaction of other customary closing conditions which are progressing
according to schedule and expected within 2025.
Golar's Chief Executive Officer, Karl Fredrik Staubo, commented: "Today's FID
marks another milestone for SESA in establishing Argentina as an attractive LNG
exporter and building on Golar's position as the market leading FLNG service
provider. FID solidifies $8 billion of net earnings visibility over 20 years to
Golar, with attractive upside potential in the FLNG commodity tariff component
and through our shareholding in SESA. We look forward to continuing to develop
the SESA partnership into a leading LNG exporter in South America."
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements (as defined in Section
21E of the Securities Exchange Act of 1934, as amended) which reflect
management's current expectations, estimates and projections about its
operations. All statements, other than statements of historical facts, that
address activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as "may," "could," "should,"
"would," "expect," "plan," "anticipate," "intend," "forecast," "believe,"
"estimate," "predict," "propose," "potential," "continue," "subject to" or the
negative of these terms and similar expressions are intended to identify such
forward-looking statements.
These statements are not guarantees of future performance and are subject to
certain risks, uncertainties and other factors, some of which are beyond our
control and are difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such forward-looking
statements. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Golar LNG
Limited undertakes no obligation to update publicly any forward-looking
statements whether as a result of new information, future events or otherwise,
unless required by applicable law.
Hamilton, Bermuda
August 6, 2025
Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act