EXMAR has reached a settlement agreement with YPF S.A. over the dispute under the TANGO FLNG Agreements (as announced on 25 June 2020), effective as of Monday (Oct19).
A settlement amount of USD 150 million will be paid by YPF to EXMAR in consideration of the early termination of the agreements and withdrawing the arbitration proceedings. The first instalment of USD 22 million has been remitted on Monday.
The balance of USD 128 million is payable in 18 monthly instalments 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 an amount up to USD 40 million.
The specific modalities are currently being discussed with the lenders. 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.
The FLNG’s immediate availability, proven track record and operational experience are the right elements to rapidly unlock new markets for gas exports. Commercial leads for new employment are actively pursued.