Golar LNG and Schlumberger have formalised their cooperation in ‘low-cost’ LNG production by forming a joint venture (JV) called OneLNG, in which the companies hold 51:49 ownership respectively.
The financial terms of the deal were not disclosed.
The two signed a memorandum of understanding (MoU) in January, which announced their intention to jointly market their services to owners of gas reserves, investors and governments.
OneLNG will combine Schlumberger’s expertise in reservoirs, wellbore technologies and production management with Golar’s “low-cost” floating LNG (FLNG) units. Golar today said this “will offer gas resource owners a faster and lower cost development thereby increasing the net present value of the resources”.
The two partners said they are “confident” that OneLNG will conclude five projects within the next five years.
An initial investment commitment has been agreed between Golar and Schlumberger to cover the estimated equity needed to develop OneLNG’s first project.
Additional debt capital will be discussed by the parties on a project-by-project basis, which will “take into account Golar’s FLNG intellectual property through an equitable contribution mechanism to be agreed between the parties,” Golar said in a release today.
“Our new venture with Schlumberger provides a powerful union of their oilfield services technology and production management business, and our low cost FLNG solution. It leverages Golar’s LNG expertise, and builds upon our industry leading position as a midstream solutions provider,” Golar’s vice-chairman, Tor Olav Troim, said.