(Energy Analytics Institute, 19.Oct.2020) — Belgium-based Exmar reached a $150mn settlement with Argentina’s state-controlled YPF SA related to a dispute under the Tango FLNG agreements.
In the deal, YPF will pay the settlement to Exmar for consideration of the early termination of the Tango FLNG agreements, as announced on 25 June 2020, effective as of today, and withdrawing the arbitration proceedings, Exmar announced 19 October 2020 in an official statement
Exmar said a first installment of $22mn has been remitted today, and the remaining $128mn is payable in 18 monthly installments backed by adequate financial security.
“The loan agreement with Bank of China and Deutsche Bank with respect to the Tango FLNG foresees a replenishment of the debt service reserve account for $40mn. The specific modalities are currently being discussed with the lenders,” Exmar said.
Exmar’s FLNG, a floating liquefaction unit with a production capacity of approximately 0.5 million tons per annum of liquefied natural gas, is now available for other projects.
By Aaron Simonsky. © Energy Analytics Institute (EAI). All Rights Reserved.