Golar LNG (GLNG) said Friday it has made a final investment decision for the 20-year redeployment charter of the FLNG Hilli Episeyo, which will be chartered to Southern Energy offshore Argentina.

The two companies have also entered into definitive agreements for a 20-year charter of MKII FLNG, which is currently under conversion in Yantai, China, Golar said.

The charter for MKII FLNG is still subject to a final investment decision and the same regulatory approvals as FLNG Hilli, Golar said, adding it expects these within the year.

FLNG Hilli, a floating liquefied natural gas vessel with a nameplate capacity of 2.45 million tons per annum, is expected to start up in 2027 and has a net charter hire of $285 million per year, according to the company.

MKII FLNG, which has a nameplate capacity of 3.5 million tons per annum, is anticipated to start up in 2028 and has a net charter hire of $400 million per year, the company said.

Under the contracts, Golar said it will make an additional 25% of realized free-on-board prices above a threshold of $8 per million British thermal unit, with no cap to the upside for gas prices.

The two vessels will be located near each other offshore Rio Negro, Argentina, in the San Matias Gulf, and monetize gas from the Vaca Muerta formation, Golar said.

Shares of the company were up more than 3% in recent premarket activity.