Ophir Energy announce sale of 20% interest in Tanzania Blocks 1, 3 and 4 to Pavilion Energy for US$1,288 million
Ophir Energy plc (“Ophir” or the “Company”) is pleased to announce that it has entered into an agreement to sell to Pavilion Energy a 20 per cent. 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. A circular setting out further details of the Transaction, together with the notice to convene a general meeting of the Company, will be posted to Ophir’s shareholders in due course.
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”
Evercore is acting as lead financial adviser to Ophir on the Transaction, with J.P. Morgan Cazenove acting as joint financial adviser and sponsor.
ISSUERS OF NEWS RELEASES AND NOT OILANDGASPRESS.COM ARE SOLELY RESPONSIBLE FOR THE ACCURACY OF THE CONTENT.
Public relations, press release distribution service, investor relations, SEC filing, regulatory news,upstream, downstream,corporate announcements,technology developments and political news
www.oilandgaspress.com – The ‘one stop shop’ for global Oil and gas press releases!!!
Email: email@example.com to let us know about your events and we’ll list them free of charge. Advertise your company’s services and reach thousands of oil and gas industry executives and professionals