Belgian shipowner Exmar will receive $150 million from Argentina’s producer YPF following a settlement agreement over the Tango FLNG unit.
To remind, Tango FLNG charterer YPF issued a force majeure in June saying that Covid-19 effects have hindered its ability to perform its obligations under charter deal with Exmar.
The two firms have been in dispute since then resulting in a settlement agreement effective as of October 19.
Under the new deal, YPF already payed the first instalment of $22 million to the Belgian company.
The rest of $128 million will be payed in 18 monthly instalments backed by adequate financial security, according to Exmar.
Additionally, the loan agreement with Bank of China and Deutsche Bank with respect to the Tango FLNG foresees a replenishment of the debt service reserve account for up to $40 million.
Exmar says it is currently in talks with lenders for the loan’s specific modalities.
FLNG available for other projects
The settlement agreement also means termination of the 10-year Tango FLNG charter with YPF.
The 0.5 million tons floating LNG producer is now available for other projects.
Exmar added it is actively pursuing commercial leads for the FLNG’s new employment.