Tellurian explores sale of upstream business to finance Driftwood LNG (updated)
06/02/2024 12:28
(Adds details and background from paragraph 2 onward)
Feb 6 (Reuters) - Tellurian TELL.A is exploring the
sale of its Haynesville upstream business, the liquefied natural
gas (LNG) firm said on Tuesday, as it looks to raise capital for
its Driftwood LNG project.
The company has been trying to develop a 27.6 million
metric-tons-per-annum LNG plant, which has suffered multiple
delays, in Lake Charles, Louisiana, and earlier said it sought
help with balance sheet management and commercial structures.
"By unlocking the full value of these high-quality
assets, we aim to substantially reduce our debt, further reduce
our general and administrative expenses, and provide additional
cash, enabling us to develop Driftwood LNG," CEO Octávio Simões
said.
Tellurian ousted its chairman and co-founder Charif Souki
late last year after auditors raised doubts about the company's
ability to cover future expenses.
At an investor presentation last year, the company had
said it could sell the first six months' worth of its LNG output
to help finance the Driftwood project.
The company said it has asked its financial advisor,
Lazard, to explore opportunities for the sale.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shailesh
Kuber)
((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))