BP cannot receive GIMI FLNG facility on Time

BP Mauritania Investments has provided a written notification of a force majeure claim relating to the Greater Tortue Ahmeyim project to Golar LNG subsidiary Gimi MS Corp. The notice claims that the COVID-19 outbreak means that BP is unable to receive the GIMI floating liquefied natural gas facility on the target connection date in 2022.

BP estimates the date will need to be delayed by a year, which it is not currently possible to mitigate or shorten. Golar has in turn asked BP to clarify how the force majeure event, which was discovered as recently as the end of March 2020, could immediately impact the schedule by an estimated one year.

The company is currently engaged in an active dialogue with BP to establish the length of the delay and the extent claimed force majeure event has caused it. Golar LNG has started talks with Keppel Shipyard, the main building contractor, to re-schedule activities to reduce and reprofile its capital spending commitments for 2020 and 2021.