Golar LNG and Golar LNG Partners are expected to enter preliminary discussions regarding the potential acquisition of interest in the Golar Hilli FLNG unit.
The 125,000-cbm liquefied natural gas carrier being converted to a floating liquefaction unit at Singapore’s Keppel Shipyard is set to start its eight-year contract with Perenco Cameroon by September 2017.
In addition, Golar LNG and Golar LNG Partners entered into an agreement to exchange all of the existing incentive distribution rights for the issuance of new IDRs and an aggregate of 2,994,364 common units and an aggregate of 61,109 general partner units, as well as an aggregate of up to 748,592 additional common units and up to 15,278 additional general partner units, Golar LNG said in its statement on Friday.
The Earn-Out Units represent an aggregate of 20 percent of the total units to be issued in connection with the transaction.
After this reset, Golar will have a total of 22,934,678 units including common and general partner units and including a total of 763,870 Earn-Out Units. Based on the October 13, 2016, closing price the value of this stake is in excess of US$470 million.
For the Partnership this Transaction reduces its cost of equity and better positions it to pursue acquisitions from Golar that add revenue backlog, reduce exposure to expiring time charters and grow its distribution capacity, the statement reads.