Golar LNG Acquires Full Ownership of FLNG Hilli: A Strategic Move for Growth and Cash Flow Accretion

Golar LNG Limited (GLNG) has announced the acquisition of Seatrium's and Black & Veatch's minority ownership interests in the FLNG Hilli, effective from January 1, 2025. This strategic move allows Golar to take full control of the asset, which is currently contracted to Perenco in Cameroon until July 2026. After the contract expiry, FLNG Hilli is intended to relocate to Argentina to start a 20-year contract for Southern Energy, a consortium of leading natural gas producers in Argentina. The Southern Energy contract remains subject to defined conditions precedent, including an export license, environmental assessment, and a Final Investment Decision by Southern Energy.

The acquisition comprises all third-party interests in the asset, including a total of 5.45% common units, 10.9% Series A shares, and 10.9% Series B shares, representing approximately 8% of the full FLNG capacity. The total consideration for the acquisitions is $90.2 million, of which $59.9 million is in equity and $30.3 million is a pro-rata share in the existing FLNG Hilli debt facility.

Golar CEO Karl-Fredrik Staubo commented on the acquisition, stating, "Golar is pleased to take full ownership of FLNG Hilli. The increased ownership will give immediate cash flow accretion and is expected to add approximately $0.5 billion of Adjusted EBITDA backlog. We would like to thank our long-term partners Seatrium and Black & Veatch as co-investors and look forward to continuing to work with both organizations in our ongoing and future FLNG growth ambitions."