EXMAR sells floating liquefaction unit to Eni
EXMAR is pleased to announce that it has signed an Agreement with Eni for the sale of the TANGO FLNG. TANGO FLNG floating liquefaction plant, delivered in 2017, has a storage capacity of 16,100 m³ of LNG (liquefied natural gas) and a liquefaction capacity of up to 0.6 million tons per year. The value of the transaction for the sale of TANGO FLNG is in a range of USD 572 and USD 694 million, depending on the actual performance of the TANGO FLNG during the first six months on site.
TANGO FLNG will be made available to Eni at the closing date of the transaction, which is expected in the second half of August 2022. Deployment of TANGO FLNG is foreseen at the Eni Congo-operated Marine XII offshore block in the Republic of Congo. As part of the project, Eni and EXMAR also agreed a 10-year charter for a Floating Storage Unit (FSU) which will be based on the conversion of a LNG carrier.
Furthermore, EXMAR will provide Operations & Maintenance services for both TANGO FLNG and the FSU and engineering services for the project which will be the object of separate contracts. EXMAR’s Executive Chairman Nicolas Saverys stated: “We are pleased to work with Eni to help increase their LNG supplies on a fast track basis. This represents a significant milestone for EXMAR in its ambition and proof of our ability to further develop LNG infrastructure solutions.”
EXMAR Announces Settlement Agreement With YPF
EXMAR has reached a settlement agreement with YPF S.A. over the dispute under the TANGO FLNG Agreements (as announced on 25 June 2020), effective as of today.
A settlement amount of USD 150 million will be paid by YPF to EXMAR in consideration of the early termination of the agreements and withdrawing the arbitration proceedings. A first instalment of USD 22 million has been remitted today. The balance of USD 128 million is payable in 18 monthly instalments backed by adequate financial security.
The loan agreement with Bank of China and Deutsche Bank with respect to the TANGO FLNG foresees a replenishment of the Debt Service Reserve Account for an amount up to USD 40 million. The specific modalities are currently being discussed with the lenders.
EXMAR’s FLNG, a floating liquefaction unit with a production capacity of approximately 0.5 million tons per annum of Liquefied Natural Gas, is now available for other projects. The FLNG’s immediate availability, proven track record and operational experience are the right elements to rapidly unlock new markets for gas exports. Commercial leads for new employment are actively pursued.