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Golar’s FLNG vessel obtains final approval to operate in Cameroon waters

Golar's floating liquefied natural gas (FLNG) vessel has secured final approval by the Gas Convention for its installation and operation in Cameroon waters, offshore from Kribi.

Société Nationale des Hydrocarbures (SNH), Cameroon's state-owned oil and gas company, Perenco Cameroon, Golar have performed a binding Gas Convention with the Republic of Cameroon, which will govern the GoFLNG vessel's operation.

Already agreed between Golar and Perenco, the binding tolling agreement is expected to be formally approved by SNH, the 25% upstream partner.

The latest agreement will enable Golar to drawdown up to $700m from the facility to finance the ongoing conversion cost for the GoFLNG facility Hilli.

Under the agreement, Golar will provide liquefaction, storage, and offloading services to SNH and Perenco.

For the past two years, the companies have been developing a floating liquefied natural gas (FLNG) export project near the Cameroon shore using Golar's floating liquefaction technology (GoFLNG).

The project is based on the allocation of 500Bcf of natural gas reserves from offshore Kribi fields, which will be exported to markets worldwide through Hilli.

"Golar's GoFLNG business model reduces the resource holder's capex and project execution risk, advance their cash-flow and is flexible enough to develop smaller reserves."

At present, the vessel is under construction at Keppel Shipyard in Singapore.

To be produced at a rate of 1.2 million tonnes of LNG a year, the allocated reserves will represent around 50% of the vessel's nameplate production capacity.

Production is slated for commencement in the second quarter of 2017.

Golar CEO Gary Smith said: "We consider ourselves very fortunate to be developing our first FLNG project in a very professional partnership with Perenco and SNH who have provided a solid foundation to this ground breaking project.

"Golar's GoFLNG business model reduces the resource holder's capex and project execution risk, advance their cash-flow and is flexible enough to develop smaller reserves."

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