Meg Gentle has stepped down as CEO of Tellurian. She has been replaced by Octavio Simões. He joined the company in 2019 and was most recently its VP of Marketing and Business Development. Prior to that, he was the CEO of Sempra LNG & Midstream.
The current chairman of Tellurian is Charif Souki. He was a co-founder of Cheniere and its CEO from 2002 until he was forced out in 2015. He formed Tellurian in 2016 with a plan to build a LNG terminal in Louisiana called the Driftwood Project.
Ms. Gentle has been the CEO since August 2016 and, prior to that, spent 12 years at Cheniere. No reason was given for her departure but it appears to be related to the stalled progress on the Driftwood Project. For the 2019 financial year, the Board did not give bonuses to Ms. Gentle and most other senior executives because the company failed to achieve ‘Final investment decision’ (FID) on the project. In other words, they didn’t secure enough firm long-term contracts with customers to allow construction to start.
Petronet pulls out
In early November, Petronet of India decided not to invest in the project. They had signed a Memorandum of Understanding with Tellurian back in September 2019 to take a $2.5 billion stake in the company. The MOU was announced during the visit to Houston by Narendra Modi, Indian Prime Minister.
The stock price of Tellurian was around $8 until doubts about the Petronet deal began to surface in February. It is currently $1.49.
Ms. Gentle will continue to receive her annual salary of $721,000 through December 2021. She was also get a future lump sum of $721,000. She also retains 3.25 million shares of restricted stock, other options and awards that will vest upon FID. These could be worth up to $21 million.
Mr Simões will receive a base salary of $725,000.