Golar LNG received a force majeure notice from a BP unit seeking to delay taking delivery of the floating liquefied natural gas facility Gimi by a year.
The floating LNG facility is destined for BP’s Greater Tortue Ahmeyim project on the maritime border of Mauritania and Senegal.
BP was expected to take delivery of the FLNG facility in 2022 and charter it for 20 years to liquefy gas from its Tortue project.
BP is expecting a one-year delay on the Tortue project due to the coronavirus pandemic and currently sees no possibility in reducing the duration of the new timing, according to a statement from Golar’s unit Gimi MS Corp on Tuesday.
Golar said it had 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 as of today the company is engaging in clarification and 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”, it said.
Golar also said it started talks with its main building contractor, Keppel Shipyard, to re-schedule activities in order to reduce and reprofile its capital spending commitments for 2020 and 2021.
The Gimi FLNG is being converted from a Moss LNG carrier to a floating LNG production unit.
It is designed to produce an average of 2.5 million tonnes of LNG per year.