BP Mauritania Investments Ltd. declared force majeure to Gimi MS Corp., a subsidiary of Golar LNG Ltd., stating that due to the recent outbreak of COVID-19, BP could not receive floating LNG plant Gimi by its target connection date in 2022. Gimi was to have been used to develop the Greater Tortue Ahmeyim project offshore Mauritania and Senegal.
BP estimates that the consequential delay caused by the claimed force majeure event is on the order of 1 year and that it is not currently possible to mitigate or shorten this delay. Golar has asked BP to clarify how a force majeure event discovered as recently as end-March 2020 could immediately impact the schedule by an estimated 1 year.
Golar said that it is engaging in clarification and an active dialogue with BP to establish the duration of the delay and the extent to which it has been caused by the claimed force majeure event. In anticipation of a potential delay, however, Golar has started discussions with its main building contractor, Keppel Shipyard Ltd., to reschedule activities to reduce and reprofile its capital spending commitments for 2020-21.
BP let contracts to McDermott International Inc. and Baker Hughes for subsea umbilicals, risers, and flowlines and subsea production system equipment at Greater Tortue Ahmeyim. McDermott planned to use its upgraded Amazon vessel, DLV 2000, North Ocean 102, and third-party vessels to support installation scheduled to begin late-2020 (OGJ Online, Mar. 11, 2019).
