Golar’s Cameroon FLNG to ship 56th cargo as throughput talks continue

Golar’s Hilli Episeyo, world’s first converted FLNG vessel, will soon dispatch the 56th cargo since it started operations three years ago offshore Kribi, Cameroon.

“FLNG Hilli Episeyo is currently offloading the 56th cargo, with 100% commercial uptime maintained,” Golar LNG said in its first-quarter report on Thursday.

This follows the 50th cargo in January this year.

Hilli Episeyo started commercial operations in May 2018 under production tolling deals with Cameroon’s Perenco and SNH.

Russia’s Gazprom is the sole offtaker from the FLNG project taking 1.2 mtpa under an eight-year deal expiring in 2026.

Moreover, the gas giant is taking 50 percent of the vessel’s total 2.4 mtpa capacity produced from two trains. The FLNG has in total four trains installed onboard.

Talks continue

Golar said it has continued to hold talks with Perenco and SNH on increasing the vessel’s throughput, but the firm also executed all remaining documentation required to remove the cap on gas reserves available for liquefaction by the FLNG.

“Although drilling has not yet commenced, current plans to bring on incremental production from first quarter in 2022 remain likely,” Golar said in its financial report.

Golar has an economic interest in around 87 percent of any incremental earnings from increased throughput of the third train, it said.

In addition to the third train discussions, Hilli is expected to generate Brent Oil linked cash flows, in which Golar has an 89 percent economic interest, from the second quarter this year.

“The contractual Brent Oil linked component of Hilli’s currently contracted production generates incremental cashflows equivalent to approximately $3 million per annum for every dollar the Brent Oil price is above $60/barrel, up to an agreed but undisclosed ceiling,” the firm said.

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