EXMAR gets go ahead from PRE for world’s First Floating LNG Production Unit

Energy, Logistics, News — By on March 28, 2012 at 8:58 AM

Pacific Rubiales Energy Corp. (“PRE”) (TSX: PRE; BVC: PREC; BOVESPA: PREB) acting through its wholly owned subsidiary Pacific Stratus Energy Colombia Corp. (“PSE”), announced today the signing of a natural gas/ LNG Liquefaction, Regasification, Storage and Loading Services Agreement with Belgium based EXMAR NV (“EXMAR”).

The Agreement calls for EXMAR to build, operate and maintain a Floating Liquefaction Regasification & Storage Unit (“FLRSU”) to be located on the Colombian Caribbean coast. The Agreement grants PSE exclusive guaranteed rights to supply and liquefy up to 69.5 MMscf/d (+/- 0.5 million tonnes of LNG per annum) over a 15 year period, under a tolling structure. The FLRSU will have a storage capacity of 14, 000 m3 of LNG and will be able to accommodate alongside a 140, 000 m3 LNG Floating Storage Unit (“FSU”). Commercial Operations of the FLRSU are estimated to start in the fourth quarter of 2014.

An artist's impression of the storage ship

Ronald Pantin, Chief Executive Officer of PRE commented: “We are very excited with this Agreement as it opens new markets and fast-tracks monetization of the PRE’s extensive natural gas reserves. This leverages PRE’s strategy to explore and develop its large gas resources in northern Colombia, and also reinforces our view that Colombia has enough gas resources to become a reliable LNG supplier for the region.”

As part of the project, PSE will build an 88 km, 18” diameter pipeline from its producing La Creciente Field to the Caribbean coast with an initial design transportation capacity of 100 MMscf/d. Gas for the project will be sourced from La Creciente Field. With this project the Company will be initially targeting markets of Central America and the Caribbean, aiming to replace fuel oil and diesel currently used for power generation.

An artist's impression of the storage facility

The project will also open potential industrial and residential market opportunities for natural gas in these countries, while putting in place new incentives to explore and develop the large undiscovered natural gas resources in Colombia.

Nicolas Saverys, CEO of EXMAR, added: “We are proud to assist PRE in reducing the carbon footprint of Central America and the Caribbean. This FLRSU will be the world’s first operational floating LNG production unit. The unique technology on board the unit is the result of EXMAR’s innovative leadership in the LNG industry during the past years. This contract represents the start of a new era for EXMAR.”

Pacific Rubiales Energy Corp., a Canadian-based company and producer of natural gas and heavy crude oil with a market capitalisation of 8.5 Billion USD, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company. It also has 100% working interest in the La Creciente natural gas field in the Sucre Department in northern Colombia. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has working interests in 40 blocks in Colombia, Peru and Guatemala. The Company’s common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia under the ticker symbols PRE and PREC, respectively.

EXMAR NV, headquartered in Antwerp, is a diversified and independent shipping group serving the international gas and oil industry. Apart from providing the ships for the transportation of these products, it also performs studies and undertakes the management of commercial, technical and administrative activities for the oil and gas industry. EXMAR strives to create shareholder value over the long term by balancing long- and short-term agreements to counteract volatility in the freight market, combined with providing services that are tailored to the needs of the customer. EXMAR is quoted on Euronext Brussels (EXM).

N.B: Viewers can contact : Miguel de Potter CFO | +32 3 247 56 70 | www.exmar.be  – This is a Regulated information.

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