Wikborg Rein and Allens Arthur Robinson have advised the sponsors of one of the world’s first floating LNG production projects.
The firms advised a consortium consisting Norway's Hoegh LNG, South Korea's Daewood Shipbuilding and Marine Engineering (DSME ENR) and Papua New Guinea’s national oil, gas and minerals company, Petromin – in a cooperative development agreement to build a floating LNG plant off the coast of PNG. The project upon completion will utilize natural gas sourced onshore to produce and sell up to three times the current mtpa output level of LNG.
“While floating LNG projects involve new technology, we believe the combination of experience in both the LNG carrier sector and shipbuilding sector (which Hoegh LNG of Norway and DSME E&R of South Korea avail as sponsors) greatly enhances the likelihood of success of this project – one of the first of its kind worldwide,” Wikborg Rein’s lead partner Kelly Malone said. Wikborg was retained as international counsel for the project financing and construction aspects of the deal.
Allens Arthur Robinson was engaged to provide counsel support on all other aspects of the project, including LNG-related matters and all local matters within PNG where AAR maintained an office. According to Singapore-based AAR partner Darren Murphy, Indonesia’s large un-tapped gas reserves in coal bed methane resources makes the country a core focus of the firm’s oil & gas practice. “This project targets a very interesting part of the world. Following the project sanction of the Exxon-Mobil-operated PNG LNG project, there is increased focus on getting projects off the ground in PNG,” he said.
Allens Arthur Robinson has recently acted on a number of significant LNG projects in the region. These include Inpex’s Masela project in Indonesia – an LNG development linked to the Abadi field oil wells – a deal AAR worked on with its Indonesian-affiliate firm Widyawan & Partners. Another project currently underway is the Prelude FLNG gas field in Australia, of which AAR is acting for Shell. ALB
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