Ophir To Buy BG Group Stake in Tanzania Offshore Block 3

Ophir Energy has applied to the government of Tanzania to take over 60% interest and operatorship of the Block 3 license from BG Group, bringing its total stake in the block to 80%.

Along with its partner, Pavilion Energy, who now holds the remaining 20%, Ophir Energy has renewed its commitment to moving into the next phase on Block 3.

“Ophir is the most active explorer in Tanzania in 2014,” said Nick Cooper, CEO of Ophir, “We are also pleased to re-assume operatorship of Block 3 to explore the potential of further upside.”

While still subject to government approval, Ophir Energy will take over operatorship of Block 3 this month and will make no payment to BG Group as a result of taking over the stake.

According to reports, after a series of production downgrades earlier this year, BG Group has been under pressure to reduce costs and reshape its asset portfolio.