Nasdaq-listed Golar LNG Partners, a limited partnership formed by Bermuda-based Golar LNG, said Friday it has entered into a time charter agreement with a major international oil and gas company.
Under the deal, the 145,700-cbm steam LNG carrier Golar Grand will be chartered for a period of up to a maximum of 9 years.
The carrier is currently on charter with Golar LNG and will be sub-chartered back to Golar LNG Partners from its parent company.
The Golar Grand would be chartered at the same rate as the existing one, for the initial period of the new charter until the existing one ends in October 2017, the company said.
It will be delivered under the new charter during the second quarter this year for an initial period of 2 years with a series of extension options up to the maximum charter period of 9 years.
Golar LNG Partners said its operating income before depreciation derived from the Golar Grand would be unchanged until October 2017 when the Golar LNG charter ends.
“Assuming initial extension options for up to 5 years are exercised the new charter is expected to generate on average approximately $10 million of operating income before depreciation per annum over the full 5 year term,” it added.