Road Town, Tortola, 03 August 2011. FLEX LNG (Oslo Axess: FLNG) is pleased to announce that InterOil has announced that an HOA has been executed for the supply of one million tonnes per annum (mtpa) of LNG from the Gulf LNG Project in PNG (please see press release from InterOil attached hereto).
The HOA sets out the basis upon which the parties intend to conclude terms for the purchase and sale of one mtpa of LNG, (FOB) for a period of 10 years commencing in 2014, to be supplied by the proposed Gulf LNG Project in PNG. InterOil and Pacific LNG intend to complete negotiations and execute binding agreements with Noble later this year.
Commenting on the LNG offtake HOA, Chief Executive Officer of FLEX LNG Management Ltd, Philip Fjeld stated:
“We are very pleased that the Gulf LNG project has signed its first agreement for LNG offtake. As we stated in May 2011, FLEX LNG has received excellent feedback from the LNG industry regarding the Gulf LNG project and we expect to see further significant LNG offtake progress being made later this year.
The field-specific FEED that FLEX LNG started in May 2011 for the floating liquefaction facility destined for the Gulf LNG project continues to move ahead as scheduled and remains on track for completion in time to take a final investment decision for the project within 2011.”
Please see the attached press release for full details, including InterOil’s press release.