Pavilion Energy Acquires Stake in Tanzania Blocks from Ophir Energy

Temasek Holdings, through its wholly-owned portfolio company Pavilion Energy, has announced an agreement to purchase a 20% stake in Tanzania Blocks 1, 3 and 4 from Ophir Energy plc. Ophir is a constituent of the FTSE 250 Index.

According to a statement issued by Pavilion Energy, the entity will pay $US 1.3 billion for the stake. Estimates put the amount of liquefied natural gas (LNG) at 15 trillion cubic feet.
Ophir is listed on the London Stock Exchange, and share prices gained nearly 17% after the deal was announced. The deal is still subject to regulatory approval and Ophir shareholder approval, but is expected to be completed in the first quarter of 2014; first delivery is expected in 2020.

With regard to the agreement Pavilion 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.”

Pavilion Energy seeks to be the center of LNG assets in the Asian region. The fields are currently owned 60/40 between BG Group plc and Ophir, respectively, with BG Group being designated as the operator of the project. BG Group and Ophir are both headquartered in the United Kingdom.

Pavilion Energy has committed capital of US$ 6.9 billion up from the US$ 1 billion that was allocated to the company in September.

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