Ophir Energy announced today that the transaction reported on 14th November 2013 to sell a 20% interest in Blocks 1, 3 and 4, Tanzania to Pavilion Energy has now been completed.
The company has received cash of USD 1,255 million plus a completion adjustment of USD 5 million to reflect interest and working capital movements since the effective date of the transaction of 1 January 2014.
A further USD 38 million is payable following the final investment decision in respect of the development of Blocks 1, 3 and 4, currently expected in 2016.
The proceeds from this transaction will support Ophir forward plans which includes investing in a number of new opportunities that are under consideration by the listed company.
Nick Cooper, CEO of Ophir Energy commented: “We are delighted to welcome Pavilion Energy into the Tanzanian LNG development across Blocks 1, 3 and 4. The partial monetisation of our interests is in keeping with Ophir’s strategy of minimising exposure to development capex and realising the value created from exploration success at the appropriate time”.
Meanwhile the company also said that Tanzania’s first planned liquefied natural gas export terminal could be expanded after the project partners – BG Group, Exxon Mobile and Statoil – discovered more gas than expected.
The terminal is expected to start shipping gas by 2020, with a final investment decision expected in 2016.
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