Nicholson y Cano advised Golar LNG on the largest offshore LNG development in Argentina

Nicholson y Cano Abogados acted as local legal counsel to Golar LNG Limited in the closing of one of the most significant transactions for the development of energy infrastructure in Argentina: the final investment decision (FID) and the execution of definitive agreements for the development of a natural gas liquefaction project aimed at export. This includes the execution of 20-year bareboat charter agreements for two floating liquefied natural gas (FLNG) units—the FLNG Hilli Episeyo and the MKII FLNG—to operate off the coast of the province of Río Negro.

This project marks an unprecedented milestone in the country’s energy history: the first permit granted for the free export of LNG for a 30-year term, along with a globally scaled infrastructure investment that will enable the monetization of natural gas from the Vaca Muerta formation, the second-largest shale gas reserve in the world. Additionally, the project has been approved under the Regime for Incentives for Large Investments (RIGI) as a “Strategic Long-Term Export Project” within the "Oil & Gas" sector.

Mariana Guzian and Nicolás Perkins, partners at the firm, led the local team that advised Golar on all regulatory, contractual, and corporate aspects of the transaction. Other participating partners included Horacio Payá (Environmental), Cecilia Martín (Tax), Martín Rodríguez (Regulatory), María Victoria Duarte Inchausti (Corporate), and Pablo Venarotti (Labor), along with associates Sofía Ravenna, Ignacio Muneta, and Federico De La Torre.

The FLNG units will be located off the coast of the San Matías Gulf and will operate under agreements with Southern Energy S.A. (SESA), a company formed by Pan American Energy (30%), YPF (25%), Pampa Energía (20%), Harbour Energy (15%), and Golar LNG (10%).

Operations of the Hilli unit are expected to begin in 2027, while the MKII unit is scheduled to start in 2028, following confirmation of the FID and completion of its conversion at CIMC Raffles shipyards in China. Golar’s estimated combined annual revenue from the project is approximately USD 685 million, with a variable rate linked to international LNG prices.

The transaction involved close collaboration with international law firm Latham & Watkins LLP, led by partner Christopher Peponis and associate Carlos Díaz, alongside Golar’s in-house legal team: Pernille Noraas, Alejandro Figueroa, and Elizabeth Lord.

This development marks the beginning of a new era for Argentina’s energy industry, as it provides the necessary infrastructure to deliver Vaca Muerta’s unconventional gas to international markets through an innovative, sustainable, and highly efficient model.

“We are proud to have played an active role in bringing this transaction to life—not only for what it represents in terms of investment and energy development for Argentina and abroad, but also because of the wide range of legal practice areas at the firm that were involved,” said Mariana Guzian, partner at Nicholson y Cano and lead counsel on the deal.

Along the same lines, Nicolás Perkins, also a partner and part of the advisory team, added: “Thanks to being a full-service firm, we had the strength and depth to support the transaction across all relevant practice areas—from contractual and administrative matters to environmental, tax, regulatory, corporate, and labor issues.”

(Photo credit: https://www.golarlng.com/fleet.aspx)