Bermuda-based Golar and US company Schlumberger are set to join forces to create a new joint venture (JV) ‘OneLNG’ to develop low cost gas reserves to LNG.
Under the JV, Schlumberger’s reservoir knowledge, wellbore technologies and production management capabilities will be combined with Golar’s low cost floating LNG (FLNG) solution to offer a lower cost development to gas resource owners.
OneLNG will serve as an exclusive vehicle for all projects that involve the conversion of natural gas to LNG that need Schlumberger’s production management services and Golar’s FLNG knowledge.
The JV is expected to conclude five projects within the next five years and will be 51% owned by Golar and 49% owned by Schlumberger.
Golar vice chairman Tor Olav Troim said: “Our new venture with Schlumberger provides a powerful union of their oilfield services technology and production management business, and our low cost FLNG solution.
“It leverages Golar’s LNG expertise, and builds upon our industry leading position as a midstream solutions provider.”
Golar and Schlumberger will initially invest to cover the estimated equity that is required to develop the first project.
The companies will also discuss additional debt capital on a project-by-project basis.
Schlumberger operations president Patrick Schorn said: “This new joint venture is uniquely positioned to optimise the development of low cost gas reserves.
“The technology platform and production management capability that Schlumberger brings will enable a total system approach, leading to a simpler and fast-tracked FID process, and reliable operational execution for the benefit of the gas resource owners.”
