Senegal - Mauritania: BP and Golar reset their Gimi FLNG agreement on GTA

BP and Golar LNG recently signed a commercial reset agreement for the floating liquefied natural gas (FLNG) vessel Gimi, a key component of BP's Greater Tortue Ahmeyim (GTA) LNG project, located off the coasts of Mauritania and Senegal.

The GTA project is an ambitious initiative to transform Mauritania and Senegal into global hubs for the production of liquefied natural gas (LNG). The first phase of the project, which is being developed by BP in partnership with Kosmos Energy, PETROSEN and SMH, is expected to produce around 2.3 million tonnes of LNG per year. With production expected to last over 20 years, the GTA project represents a significant strategic opportunity for the region.

The FLNG vessel Gimi arrived at the project site in February 2024, marking a crucial milestone in the development of GTA Phase 1. As a floating natural gas liquefaction unit, the Gimi plays a central role in on-site LNG processing and production.

The reset agreement between Golar LNG, owner and operator of the Gimi, and BP aims to simplify contractual cash flows and resolve previous disputes relating to payment mechanisms for pre-commercial operations.

- Daily payment schedule: A new daily payment schedule has been agreed, including escalation mechanisms based on project milestones up to the commercial operations start date (COD). These payments are guaranteed by strict deadlines.

- Lump-sum payments: The agreement also provides for additional lump-sum payments to Golar LNG, subject to the achievement of certain project milestones. These pre-COD cash flows will be deferred and amortized over the 20 years of the contract from COD.

This agreement puts an end to ongoing disputes, including the current arbitration process, and redirects the parties towards achieving COD. To accelerate this deadline, it has been decided to start commissioning the Gimi FLNG with LNG loading before gas from the floating production, storage and offloading (FPSO) unit becomes available. The FPSO, after construction at the COSCO Qidong shipyard in China, arrived on site in June 2024.

The reset agreement between BP and Golar LNG is a strategic step that ensures the continuity and stability of the Greater Tortue Ahmeyim LNG project. By simplifying cash flows and resolving previous disputes, the partners are now focused on the rapid commissioning of Gimi FLNG, consolidating the foundations for a prosperous energy future for Mauritania and Senegal.