Shot during my tour of service on MISC's ship, SS Puteri Firus just a couple of months ago. We were anchored here in Bintulu, awaiting for our next cargo loading at Bintulu Port. Our ship normally takes cargo from this port and discharges them in Japan, Korea, Taiwan and recently China. This is a Liquiefied Natural Gas (LNG) carrier.
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Latham & Watkins Advises Golar LNG in 2-Vessel, 20-Year FLNG Development Project in Argentina

May 2, 2025
Multijurisdictional team represents the marine LNG infrastructure company in the transaction.

Golar LNG Limited (Golar) has announced (i) the Final Investment Decision and fulfilment of all conditions precedent for the 20-year re-deployment charter of the FLNG Hilli Episeyo, first announced on July 5, 2024, and (ii) a definitive agreement for a 20-year charter for the MKII FLNG (MKII FLNG), currently under conversion at CIMC Raffles shipyard in Yantai, China. Each vessel (and in the case of the MKII FLNG, subject to the Final Investment Decision and fulfillment of all conditions precedent) will be chartered to Southern Energy S.A. (SESA), offshore Argentina. SESA is a company formed to enable LNG exports from Argentina, owned by a consortium of leading Argentinian gas producers including Pan American Energy (30%), YPF (25%), Pampa Energia (20%), and Harbour Energy (15%), as well as Golar (10%). The net charter hire to Golar of the vessels is a combined US$685 million per year, plus a commodify linked tariff component.

The project has received the full support of the National and Provincial Governments in Argentina that granted all necessary approvals including (i) the first ever unrestricted 30-year LNG export authorization in Argentina; (ii) qualification for the Incentive Regime for Large Investments (RIGI); and (iii) provincial approval by the province of Río Negro for the offshore and onshore Environmental Impact Assessments for FLNG Hilli. The FLNGs will be located in close proximity of each other, offshore in the Gulf of San Matias Gulf in the province of Rio Negro, Argentina. The vessels will monetize gas from the Vaca Muerta formation, the world’s second largest shale gas resource, located onshore in the province of Neuquen, Argentina. FLNG Hilli will initially utilize spare volumes from the existing pipeline network. SESA intends to facilitate for a dedicated pipeline to be constructed from Vaca Muerta to the Gulf of San Matias to serve gas supply to the FLNGs.

Latham & Watkins LLP represents Golar LNG in the transaction with a multi-jurisdictional team led by Chris Peponis and Carlos Diaz, with support from partners Jason Webber, John Pierce, JP Sweny, Oliver Middleton, Robert Malionek, and associates Andy Yuan, Charlotte Hawkins, Duncan Graves, and Claire Plecha.

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