Golar LNG Partners announced that it has entered into an agreement to acquire the ownership interests in the company that will own and operate the Golar Igloo, a floating storage and regasification unit (FSRU), from Golar LNG Limited for an aggregate purchase price of $310.0 million.
Golar LNG Partners will finance the purchase price in part by the assumption of outstanding bank debt in respect of the Golar Igloo on the closing date of the acquisition (which the Partnership estimates will be approximately $161.6 million). The Partnership expects to fund the remainder of the purchase price by issuing equity.
The Golar Igloo is being built by Korean shipyard Samsung Heavy Industries Co. Ltd. and is scheduled to be delivered in December 2013. The Partnership expects the Golar Igloo acquisition to close in March 2014, when the Golar Igloo will commence service under a five-year time charter with Kuwait National Petroleum Company (KNPC), supporting KNPC’s LNG import operations at Mina Al Ahmadi in Kuwait. The Golar Igloo acquisition may close earlier than March 2014 in the event that Golar secures a short-term LNG carrier contract for the Golar Igloo for the period prior to the commencement of the Golar Igloo Charter. The Golar Igloo acquisition is subject to the Partnership obtaining the funds necessary to pay the purchase price and the satisfaction of customary closing conditions.
Under the Golar Igloo Charter, the Partnership will provide portside FSRU services to KNPC for nine months of each year. During the term of the Golar Igloo Charter, there will be a three month window each year, from December until March, during which the Golar Igloo will not provide FSRU services to KNPC, permitting the Partnership to pursue spot carrier and other short-term business opportunities.
[mappress] LNG World News Staff, December 06, 2013; Image: Golar LNG