Golar Eskimo Changes Hands

Nasdaq-listed  liquefied natural gas (LNG) shipping company Golar LNG has completed the sale of its ownership interests in the companies that will own and operate the floating storage and regasification unit (FSRU) Golar Eskimo to Golar LNG Partners for USD 390 million. 

Golar LNG Partners financed the purchase with cash on hand, the proceeds of a USD 220 million loan from Golar LNG and the assumption of outstanding bank debt in respect of the Golar Eskimo on the closing date of the acquisition (approximately USD 162.8 million).

Golar LNG will retain the right to use the FSRU and to charter the vessel to a third party starting in January 2015 and ending in June 2015, with any hire received during this belonging to Golar LNG. In return, Golar LNG will pay Golar Partners USD 22 million to be paid in equal monthly installments starting in January 2015.

Back in August 2013, Golar LNG Limited agreed to charter Golar Eskimo to the Government of the Hashemite Kingdom of Jordan. The FSRU Golar Eskimo will be moored at a purpose built structure that is to be constructed by the Aqaba Development Corporation off the Red Sea port of Aqaba. Capable of storing 160,000 cubic metres of LNG and delivering up to 500 MMSCFD with a peaking capacity of 750 MMSCFD, the FSRU will connect to the Jordan Gas Transmission Pipeline that delivers natural gas to power plants throughout the Kingdom.

Earnings under the ten year contract are due to commence during the first quarter of 2015. The Jordan government has the option to terminate the time charter after year five, subject to payment of an early termination fee.