Golar entered into 20-year agreements for 5.95mtpa nameplate capacity in Argentina - one of the world's largest FLNG development projects.

02 May 2025 08:31 CEST

Golar LNG Limited ("GLNG", "Golar" or "the Company") is pleased to announce the
Final Investment Decision ("FID") and fulfilment of all conditions precedent for
the 20-year re-deployment charter of the FLNG Hilli Episeyo ("FLNG Hilli" or
"Hilli"), first announced on July 5, 2024. The vessel will be chartered to
Southern Energy S.A. ("SESA"), offshore Argentina. In addition, Golar and SESA
have signed definitive agreements for a 20-year charter for the MKII FLNG,
currently under conversion at CIMC Raffles shipyard in Yantai, China. The MKII
FLNG charter remains subject to FID and the same regulatory approvals as granted
to the FLNG Hilli project, expected within 2025.

Key commercial terms for the respective 20-year charter agreements include:

* FLNG Hilli (nameplate capacity of 2.45 MTPA): Expected contract start-up in
2027, net charter hire to Golar of US$ 285 million per year, plus a
commodity linked tariff component of 25% of Free on Board ("FOB") prices in
excess of US$ 8/mmbtu.
* MKII FLNG (nameplate capacity of 3.5 MTPA): Expected contract start-up in
2028, net charter hire to Golar of US$ 400 million per year, plus a
commodity linked tariff component of 25% of FOB prices in excess of US$
8/mmbtu.

The two FLNG agreements are expected to add US$ 13.7 billion in earnings backlog
to Golar over 20 years, before adjustments (based on US-CPI) to the charter hire
and before commodity linked tariff upside. For every US$ 1/mmbtu above the US$
8/mmbtu, the total upside for Golar will be approximately US$ 100 million when
both FLNGs are in operation. Subject to a 3-year notice and payment of a fee,
SESA may reduce the term of the agreement to 12 years for the FLNG Hilli and to
15 years for the MKII FLNG.

The commodity linked tariff component is upside oriented. Golar will make 25% of
realized FOB prices above a threshold of US$ 8/mmbtu, with no cap to the upside
for gas prices. Golar has also agreed to a mechanism where the charter hire can
be partially reduced for FOB prices below US$ 7.5/mmbtu down to a floor of US$
6/mmbtu. Under this mechanism, the maximum accumulated discount over the life of
both contracts has a cap of US$ 210 million, and any outstanding discounted
charter hire amounts will be repaid through an additional upside sharing if FOB
prices return to levels above US$ 7.5/mmbtu. Golar is not exposed to further
downside in the commodity linked FLNG charter mechanism.

SESA is a company formed to enable LNG exports from Argentina. SESA is 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 gas producers have committed to supply their pro-rata share of
natural gas to the FLNGs under Gas Sales Agreements ("GSA") at a fixed price per
mmbtu before adjustments (based on US-CPI). Golar's 10% shareholding in SESA
provides additional commodity exposure.

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. The project
expects to benefit from significant operational efficiencies and synergies from
two FLNGs in the same area.

Golar's CEO, Karl Fredrik Staubo commented: "Golar is excited to partner with
the leading gas producers in Argentina in establishing the country as an LNG
exporter. The vast resources of the Vaca Muerta formation will provide the LNG
market with a reliable long-term source of attractive LNG supplies, and a
significant contribution to Argentina. For Golar, the project adds robust
earnings backlog, attractive commodity upside potential in the FLNG tariff and
strong partner alignment through our shareholding in SESA."

About SESA:
Southern Energy S.A. is a company founded in 2024 for the purpose of LNG exports
of Argentinian natural gas. SESA's shareholders comprise Pan American Energy
(30%), YPF (25%), Pampa Energia (20%), Harbour Energy (15%) and Golar LNG Ltd.
(10%). SESA will be responsible for procuring natural gas from the domestic
market, and facilitating the necessary infrastructure to bring the natural gas
to the flange of the FLNGs in the Gulf of San Matias. SESA will also be
responsible for the operations of the FLNGs with support from Golar, and for the
marketing and sale of the LNG produced.

About Golar LNG Ltd:
Golar LNG Limited ("GLNG") is a NASDAQ listed maritime LNG infrastructure
company. Through its 79-year history, the company has pioneered maritime LNG
infrastructure including the world's first Floating LNG liquefaction terminal
(FLNG) and Floating Storage and Regasification Unit (FSRU) projects based on the
conversion of existing LNG carriers. Today Golar is a leading pure play FLNG
company, and the only proven provider of FLNG as a service.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements (as defined in Section
21E of the Securities Exchange Act of 1934, as amended) which reflect
management's current expectations, estimates and projections about its
operations. All statements, other than statements of historical facts, that
address activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as "may," "could," "should,"
"would," "expect," "plan," "anticipate," "intend," "forecast," "believe,"
"estimate," "predict," "propose," "potential," "continue," "subject to" or the
negative of these terms and similar expressions are intended to identify such
forward-looking statements.

These statements are not guarantees of future performance and are subject to
certain risks, uncertainties and other factors, some of which are beyond our
control and are difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such forward-looking
statements. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Golar LNG
Limited undertakes no obligation to update publicly any forward-looking
statements whether as a result of new information, future events or otherwise,
unless required by applicable law.

Hamilton, Bermuda
2 May 2025

Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

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