Ann: Project Restructure To Give Arrow LNG Produc, page-15

re: Ann: Project Restructure To Give Arrow LN... The structure is probably more for financing and insurance purposes. It will reduce the potential losses should LNGI go bust as LNGI will only partially hold what is in the refrigeration process and not what is in storage. AOE will also be able to secure future funding against the gas in storage as it effectively becomes their inventory. They will also be able to insure against any loss of finished product due to accidents before it is handed over to Golar.

RB