Tellurian, the liquefied natural gas (LNG) company, revealed on Tuesday its contemplation of selling its Haynesville upstream division as a strategic move to generate funds for its Driftwood LNG project, as reported by Reuters.
Having previously communicated its intent to seek support for balance sheet management and commercial structures, Tellurian aims to address setbacks in the development of its 27.6 million metric-tons-per-annum LNG plant in Lake Charles, Louisiana. Encountering multiple delays in the project, the company is now exploring the potential sale of its Haynesville upstream division to bolster financial resources.
In a statement, CEO Octávio Simões emphasized the company’s goal to unlock the full value of these high-quality assets, anticipating a significant reduction in debt, decreased general and administrative expenses, and additional cash infusion to propel the Driftwood LNG project. Notably, Tellurian made headlines last year by removing its co-founder and chairman, Charif Souki, in response to concerns raised by auditors regarding the company’s financial capacity to meet impending expenses.
During an investor presentation in the previous year, the company had indicated the possibility of selling the first half of its LNG output to contribute to funding the Driftwood project. In the latest development, Tellurian has engaged Lazard, its financial advisor, to explore potential sales opportunities for the Haynesville upstream division.
