Golar LNG Brings Back Ex-CEO

Golar LNG

By MarEx 2016-05-10 19:44:35

Golar LNG said former Chief Executive Oscar Spieler would return to the top job as the natural gas shipping company pushes deeper into the Brazilian power generation market to cope with weakness in freight rates.

Sluggish demand for LNG from key markets such as South Korea and Japan, coupled with growing supply of tankers, has hurt rates for transporting the fuel in the past couple of years.

Golar LNG said on Tuesday it was in talks with a private equity firm for investment in Golar Power, which holds an interest in a 1.5 gigawatt power station in Sergipe, Brazil.

Golar LNG shares rose as much as 3.2 percent in morning trading.

The news comes about two months after the company's joint venture with Brazilian company GenPower Participaçoes said it had reached a preliminary deal with Exxon Mobil for LNG supply to the gas-to-power project in Sergipe.

Spieler, who led the company between July 2009 and June 2011, will replace Gary Smith, who is stepping down. Spieler was responsible for Golar LNG's first floating liquefied natural gas project, the company said.

Golar LNG has also hired former BP executive Krzysztof Zielicki to work with Schlumberger, its partner for developing stranded gas assets.

Golar LNG is developing a floating LNG project off Equatorial Guinea with Ophir Energy, which was in talks with Schlumberger for sale of a 40 percent stake in the project. However, Ophir and Schlumberger could not reach an agreement.

As a priority, Golar LNG stated that it remains focused on maximizing the utilization and rate levels of its LNG carriers and seeking employment for the FSRU fleet. It intends to ensure that its first FLNG vessel, Golar Hilli, is developed on time and within budget and successfully commences its operations.  Most of this activity is currently coordinated from the company's Oslo office. The vessel conversion is currently progressing well within budget and is on target for its scheduled delivery from the yard.

The company also intends to capitalize on its position as one of the few credible companies able to develop future FLNG projects. 

Golar LNG shares were up 2.8 percent at $17.69.