Ophir Energy has announced that it has sold its 20 per cent interest in three offshore gas blocks in Tanzania to Pavilion Energy for US$1.3bn
Ophir Energy will continue to hold a 20 per cent interest while BG Group owns the remaining 60 per cent of the Tanzania Blocks 1,3 and 4.
Pavilion Energy is a wholly-owned subsidiary of Temasek, a Singapore investment company.
The company said that Ophir Energy would receive US$1.25mn upon completion of transaction in Q1 2014. The remaining transaction is expected following the final investment decision with respect to development of the blocks, Pavilion Energy added.
Nick Cooper, CEO of Ophir Energy, said, “We are delighted to have entered into this agreement with Pavilion Energy. Pavilion Energy represents a positive addition to the joint venture as it progresses through into the development phase and is a high quality endorsement of Tanzania’s first LNG development.
“The sale is consistent with our strategy of adding value in the exploration and appraisal phase of the E&P cycle. Tanzania remains a core part of our portfolio and we will continue to invest further in the country’s growth through our exploration activities.”
Tan Sri Mohd Hassan Marican, Pavilion Energy’s chairman, added that the natural gas developments in Tanzania hold tremendous potential, not just for Pavilion Energy, but also for Singapore and Asia.
The first gas delivery is expected in 2020, Ophir Energy said.
