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Monday, September 25, 2017

Golar LNG Cuts Dubai FSRU Charter

July 12, 2017

Image: Golar LNG Limited

Image: Golar LNG Limited

 Golar LNG Partners has agreed with the charterer of the Golar Freeze FSRU, Dubai Supply Authority (DUSUP) certain amendments to the existing time charter that was due to end in May 2020.

 
DUSUP have two FSRU's on contract and do not currently have full time use for Golar Freeze and have therefore been working with Golar Partners to find alternative employment. Golar Partners and DUSUP will continue to cooperate with regards to future employment for Golar Freeze but in the meantime have agreed certain amendments to the existing charter.
 
Golar Partners and DUSUP have agreed to shorten the charter by one year and to remove DUSUP's termination for convenience rights and extension option rights (which ran to 2024). 
 
Golar Partners will receive the right to terminate its obligations under the charter whilst continuing to receive the capital element of the charter (not the operating cost element) until the end of the new charter period in April 2019. The operating cost element of the charter will be reduced to a nominal amount from November 2017 and Golar Partners will similarly save operating costs from putting the vessel into layup pending new employment.
 
Golar Partners currently sees several opportunities for employment of smaller scale FSRU's like Golar Freeze and Golar Spirit which have significantly lower capital cost than newbuild FSRU's.
 
This arrangement gives both parties more certainty and enables Golar Partners to re-market the vessel with the clear knowledge of her long term availability from 2018.
 
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