Ophir Sells 20 Pct Interest in Tanzanian Blocks
Ophir Energy said that it has entered into an agreement to sell to Pavilion Energy a 20 percent interest in Tanzanian Blocks 1, 3 and 4 for a maximum consideration of US$1,288 million.
Highlights of the Transaction
- Consideration payable to Ophir on completion of the Transaction of US$1,250 million with further contingent consideration of US$38 million following the final investment decision in respect of development of Blocks 1, 3 and 4, currently expected to be in 2016;
- Introduction into the Blocks 1, 3 and 4 Joint Venture of a strong and well financed partner with access to gas markets in Asia including Singapore. Pavilion Energy is a wholly owned subsidiary of Temasek, a Singapore investment company;
- The Transaction is expected to complete in the first quarter of 2014; and
- Ophir will remain a significant investor going forward in Tanzania through its continued stake in the Joint Venture and exploration drilling in Block 7 and East Pande.
The sale is subject to regulatory, governmental and other third party approvals and approval by Ophir’s shareholders.
Ophir’s CEO, Dr Nick Cooper, commented: “We are delighted to have entered into this agreement with Pavilion Energy. Pavilion 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, monetising that value at the appropriate time and recycling that capital into further value creating opportunities. Tanzania remains a core part of our portfolio and we will continue to invest further in the country’s growth through our exploration activities”
Pavilion Energy’s Group CEO, Mr Seah Moon Ming, commented: “This investment in Tanzania Blocks 1, 3 and 4 is a key milestone for Pavilion Energy to build up our LNG portfolio. It supports our plan to secure long-term energy supply at competitive prices to meet the need for clean energy in Asia. This is also important for us as we work to develop an Asian LNG hub”
Pavilion Energy’s Chairman, Tan Sri Mohd Hassan Marican, commented: “The natural gas developments in Tanzania hold tremendous potential – not just for Pavilion Energy but for Singapore and Asia. Pavilion Energy looks forward to the partnership with BG Group and Ophir Energy in realising the LNG project. The LNG from the Tanzanian project will provide another source of supply to the Asian markets”
LNG World News Staff, November 14, 2013; Image: Ophir