GULF Completes the “German Offshore Wind Farm” Deal, Starting to Recognize Income Onwards

Gulf Energy Development Public Company Limited (GULF) informed in reference to the company’s notification to the Stock Exchange of Thailand on July 7, 2020, regarding Gulf International Holding Pte. Ltd. (GIH), a wholly-owned subsidiary of the Company, which entered into a Share Purchase Agreement with the group of Global Infrastructure Partners (GIP) to acquire a 50% interest in the Borkum Riffgrund 2 Offshore Wind Farm GmbH & Co. oHG (BKR2 Project), in which Ørsted A/S (“Ørsted”) holds the remaining 50%, and that the Company shall complete the transfer of shares after the fulfillment of conditions precedents.

GULF announced that as of September 24, 2020, all conditions precedent under the Share Purchase Agreement have been fulfilled, namely, obtaining licenses and permits from the German authorities and creditors or debenture holders of the project, which are requirements as a new shareholder. As a result of the share transfer completion, the Company has officially become an indirect shareholder (through GIH) in BKR2 Project.

 

The BKR2 Project is an offshore wind farm project with an installed capacity of 464.8 megawatts located in the German North Sea, northwest of Germany. The BKR2 Project has commenced commercial operation since April 2019 and has a Power Purchase Agreement (PPA) and an Operation & Maintenance Agreement (O&M Agreement) with Ørsted for a period of 20 years from the start of operations. Moreover, the BKR2 Project receives a guaranteed Feed-in-Tariff (FiT) backed by the German government for 9.5 years after commencement of commercial operations and will receive merchant price with guaranteed floor price for years 9.5-20.