Africa, invesment, news

Africa News November 15, 2013 at 11:04AM

this blog is spored BY reflex Eco Group

VENTURES AFRICA – Singapore-based Pavilion Energy Ltd has agreed to pay $1.3 billion to acquire a 20 percent stake in three Tanzanian gas blocks from Africa-focused Ophir Energy Plc.

London-listed Ophir Energy holds 40 percent interest in Blocks 1,3 and 4 of the Ruvuma and Mafia Deep Basins while BG Group owns the remaining 60 percent.

Ophir Energy will receive another $38 million following a Final Investment Decision (FID) on the development of Blocks 1, 3 and 4, which is currently expected in 2016.

“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 (liquefied natural gas) development,” Ophir’s CEO, Nick Cooper said.

Pavilion Energy, which was formed in April by Singapore’s state-linked investment firm, Temasek Holdings (one of Singapore’s two sovereign wealth funds with a global portfolio worth $172.29 billion as of March this year) with a committed capital of US$6.9 billion said “the move into Tanzania represented the company’s first major acquisition in the upstream gas sector.”

Pavilion Chairman, Hassan Marican in a statement released by the company said: “The natural gas developments in Tanzania hold tremendous potential … not just for Pavilion Energy but for Singapore and Asia.”

Pavilion Energy’s Group CEO Seah Moon Ming said in the same release: “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.”

 

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