Continental Focus, International Reach

Greater Tortue Ahmeyim project delayed one year

Thursday, April 9, 2020

BP has issued a force majeure declaration to Gimi MS Corp., a subsidiary of Golar LNG Ltd relating to the Greater Tortue Ahmeyim project. Golar says the Notice received from BP claims that due to the recent outbreak of the novel coronavirus (COVID-19) around the globe, BP is not able to be ready to receive the floating liquefied natural gas facility – FLNG GIMI – on the target connection date in 2022.

In an operational update, Kosmos Energy confirmed that the “operator’s priority is maintaining the safety of its staff, contractors and the general public, and continued compliance with international and national restrictions to stop the spread of the coronavirus. With border closures, travel bans, social distancing restrictions and office closures arising from the coronavirus, the project’s activities across global locations have been impacted. These ongoing restrictions have had an impact on time-critical workstreams, including the construction of the breakwater during the 2020 weather window. As a result, the Phase 1 project timeline is expected to be delayed by approx. 12 months, with first gas now expected in the first half of 2023. Phase 1 of the project is currently over 30% complete.”

Golar reports in the notice BP estimated at this stage that the consequential delay caused by the claimed force majeure event is in the order of one year and that it is not currently possible to mitigate or shorten this delay. Golar has asked BP to clarify how a force majeure event discovered as recently as the end of March 2020 could immediately impact the schedule by an estimated one year.

Based on the information received, Golar is engaging in clarification and an active dialogue with BP to establish the duration of the delay and the extent to which this has been caused by the claimed force majeure event. However, in anticipation of a potential delay, the company has commenced discussions with its main building contractor, Keppel Shipyard Limited, to re-schedule activities in order to reduce and reprofile its capital spending commitments for 2020 and 2021.


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