Ophir Energy plc has agreed to sell a 20% interest in its Tanzanian Blocks 1, 3 and 4 to Pavilion Energy for a maximum consideration of US$ 1.288 million.
Pavilion Energy is a wholly owned subsidiary of Temasek, a Singapore investment company, and has access to gas markets in Asia, including Singapore.
The consideration is 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.
The transaction is expected to complete in the first quarter of 2014, subject to regulatory, governmental and other third party approvals and approval by Ophir’s shareholders.
Tanzania’s first LNG development
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.”
Pavilion Energy’s Group CEO, Seah Moon Ming, said: “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.”
Tan Sri Mohd Hassan Marican, Chairman of Pavilion Energy, also 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.”
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.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15112013/pavilion_energy_purchases_interest_in_tanzania_blocks_445/