Asian investor eyes Tanzanian gas

Thursday, November 14, 2013

Natural gas from future multi-train LNG developments in Tanzania could now be destined for Asian markets.

Singapore-based investor Pavilion Energy is to take a 20% in the joint venture partnership looking to develop natural gas finds in Blocks 1, 3 and 4 off the East African country's coast.

The deal, with JV partner Ophir Energy, is worth a maximum US$1,288million and is expected to close in Q1 2014.

Image: The Deepsea Metro-I, which has been used for drilling by the partnership offshore Tanzania.

The three blocks are operated by BG Group, holding 60% interest, with Ophir currently holding the remaining 40%.

Ophir said Pavilion’s introduction into the partnership would give it access to gas markets in Asia, including Singapore.

Ophir said in August, work selecting a site was nearing completion and a preferred site for Tanzania’s first multi-train LNG facility could be announced this year. At the end of October, BG said it had submitted a proposal for an LNG plant site for consideration by the government.

Discussions were held with the Tanzanian government and state-oil firm Tanzania Petroleum Development Corp, as well as neighboring Block 2 co-venturers—Statoil and ExxonMobil—who would be involved in jointly developing an LNG facility.

Read more: Tanzanian LNG Site Select in 2H -

A final investment decision to develop discoveries in Blocks 1, 3 and 4 is currently expected in 2016, said Ophir.

Pavilion Energy is a wholly owned subsidiary of Temasek, a Singapore investment company.

Pavilion Energy’s Group CEO MR 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.” 

Ophir said it would remain an investor in Tanzania, through its continued stake in the joint venture in blocks 1, 3 and 4, as well as operated exploration in Block 7 and East Pande.

Preparations are underway to drill the high-impact Mlinzi Mbali-1 well in Block 7, which is due to spud during the second half of November.

Evercore is acting as lead financial advisor to Ophir on the transaction, with JP Morgan Cazanove acting as joint financial advisor and sponsor.

Read more: Tanzanian Investment to Continue -

Categories: LNG Deepwater Drilling Europe Asia Natural Gas

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