NEW YORK — New Fortress Energy Inc. (NFE) has reached an agreement with Golar LNG Ltd. (GLNG) for the sale of NFE’s ownership stake in the Hilli in exchange for the return of 4.1 million NFE shares and $100 million in cash.
GLNG will acquire NFE’s entire interest in the 2.4-mtpa floating liquefaction facility Hilli. NFE will also extinguish $323 million in debt obligations associated with its interest in the Hilli.
NFE Chairman and CEO Wes Edens said, "From a strategic perspective, it will allow us to focus solely on our own FLNG portfolio that we own 100% of as well as buy back NFE stock at an attractive valuation."
Golar CEO Karl Fredrik Staubo added that the transaction increases Golar’s portion of cash flow generation from Hilli’s existing contract until July 2026.
The transaction is expected to close in first-quarter 2023.
FLNG Hilli is currently located offshore Kribi, Cameroon. Its customers are oil and gas company Perenco and Cameroon’s national oil firm Société Nationale des Hydrocarbures.