Herbert Smith Freehills' has advised Golar LNG Ltd on its successful bid to provide Kuwait National Petroleum Company (KNPC) floating storage and regasification (FSRU) services to support KNPC's LNG import operations at Mina Al Ahmadi. The regasification services will be delivered via a new-build 170 000 m3 vessel manufactured by Samsung Heavy Industries.
The contract runs for an initial period of 5 years and stipulates that Golar LNG will provide regasification services to KNPC for 9 months of the year. There will be a 3 month window each year whereby Golar LNG is entitled to pursue other LNG activities, such as LNG spot trading. The total consideration for the 5 year contract is US$ 213 million, although there is a mechanism for an extension beyond the 5 year term.
There was a long and protracted tendering process, which started in June 2012, with two different versions of the contract and numerous modifications to the structure of the deal and the tendering conditions. The contract will commence in March 2014, with delivery of the new-build vessel expected in the fourth quarter of this year.
Edited from various sources by Callum O'Reilly
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