New York-listed Golar LNG is in talks with French operator Perenco about boosting production from its liquefaction vessel off Cameroon.

The Hilli Episeyo unit has to date exported 29 cargoes from the Kribi gas field in Cameroon but so far has only made use of two of the vessel’s four trains.

However, in its third-quarter results statement, the contractor said the companies are in discussions “regarding a smaller increase in production, which will utilise part of train three, starting from the first quarter of 2020.”

In addition, Perenco plans a drilling campaign in the Kribi area next year to prove up more reserves.

“If successful,” said Golar, “this may lead to further capacity utilisation and/or contract extension for (the) Hilli Episeyo.”

The contractor’s only other firm FLNG contract is for phase one of BP’s Tortue project off Mauritania and Senegal.

It said conversion work on the Gimi vessel in Singapore is “progressing according to schedule and budget".

Two of five planned dry dockings are now complete, with sponson fabrication under way, while detailed engineering and procurement by Keppel and topsides contractor Black & Veatch are ongoing.

Around 80 Golar personnel and 1500 Keppel employees are working daily on the project, with production operations set to start in the fourth quarter of 2022 under a 20-year contract.

Based on continuing 100% uptime for its vessel in Cameroon, Golar said interest in low-cost FLNG solutions is “strong".

Golar said it is continuing to develop its FLNG pipeline with four major oil and gas companies or state-owned players, but cautioned that these will “take time to mature".

Chief executive Iain Ross said: "Increasing interest from oil majors and NOCs, appreciative of our low cost and flexible FLNG solutions and impressed by our ...operational track record, is ...encouraging".

One potential project involves a 3.5 million tonne per annum FLNG unit at Noble Energy’s Leviathan field off Israel.

Golar and another oil major have also executed an agreement to jointly assess the suitability of FLNG solutions across a range of gas resource opportunities.

Due diligence on this opportunity is under way and term sheets are being negotiated, Golar said.

In addition, project development discussions are progressing with another oil major as well as term sheet negotiations with a national oil company,

Nearer term, Golar remarked there is tentative interest from potential investors in buying into its existing FLNG contract backlog and supporting the company going forward.

It added that work with Asian yards to find ways to standardise their FLNG production and design model to achieve lower costs and more efficient financing is ongoing.

Due to balance sheet limitations, Golar is working with infrastructure funds interested in investing in existing FLNG projects as well as others currently under discussion.

In order to allow the next floating LNG project to move forward, said Golar, “proceeds from a partial sell down of a contracted FLNG unit at an attractive multiple, the use of alternative shipyards able to offer more attractive payment terms during construction and the use of export credit finance are being pursued".

Golar LNG posted a net loss of $82 million for the third quarter, an improvement on the $113 million loss of the previous three months.

Operating revenues edged up $2 million to $99 million, while adjusted earnings before interest, tax, depreciation and amortisation hit $59 million, a $19 million increase on the prior period.

Rigs And Vessels

Golar's Hilli Episeyo FLNG vessel set to increase output