Companies say 40% of the world’s gas reserves can be classified as stranded; Golar and Schlumberger plan to employ FLNG to monetize stranded gas
Global LNG shipper Golar LNG Limited (ticker: GLNG) and the world’s largest oilfield service company Schlumberger (ticker: SLB), have launched OneLNG℠, a joint venture intended to rapidly develop low cost gas reserves to LNG. According to a press release, the combination of the Schlumberger production management expertise with Golar’s Floating LNG (FLNG) facilities will target capturing gas and sending LNG to market faster and with lower cost.
Golar FLNG ship rendering
Operators of LNG carriers for 30 years, Golar developed the world’s first Floating Storage and Regasification Unit (FSRU) projects based on the conversion of existing LNG carriers.
Ownership and Financing
Golar and Schlumberger have 51/49 ownership of the joint venture. The companies said they will discuss additional debt capital as required on a project-by-project basis. This future financing will take into account Golar’s FLNG intellectual property through an equitable contribution mechanism to be agreed between the parties.
Golar Vice Chairman Tor Olav Troim said the venture leverages Golar’s LNG expertise and “builds upon our industry leading position as a midstream solutions provider.” Schlumberger President Operations Patrick Schorn said the partnership will lead to a simpler and fast-tracked FID process.
The companies believe OneLNG will conclude 5 projects within the next 5 years.
