Ophir May Sell Tanzanian Resources To Indians - Africa’s premier report on the oil, gas and energy landscape.

Ophir May Sell Tanzanian Resources To Indians

Block 1 has been the most prolific.

London listed Ophir Energy has confirmed it is willing to sell some stakes in three of the acreages in Tanzania in which it has participating interest.

It has been in talks with India’s state-owned natural gas processing and distribution company GAIL (India) Limited.

Ophir has 40% stake each in Block, 1, 3 &4 and an 80% stake in gas rich offshore Tanzania. BG Group operates Blocks 1, 3 &4 with 60%, in which 40Tcf of gas have reportedly been discovered in the last three years. Block 1 has been the most prolific. “The Jodari and Mzia discoveries in Block 1 are both now likely to be anchor assets for Tanzania’s first LNG development”, the company states in its 2012 annual report. Ophir operates Block 7 with 80% and a fifth acreage, named East Pande, with 70%. GAIL reportedly wants to acquire a 10-30% stake in these five blocks, according to the Indian press, who add that GAIL’s move into the upstream sector is an attempt to diversify gas supply sources as the firm meet its current demand through imported liquefied natural gas (LNG) and domestic sources.

Ophir confirmed in a press release that it was looking to sell down its interests in Blocks 1, 3 and 4 “but there is no certainty that this process will conclude successfully nor can there be any certainty over the value of any such deal if it were to complete. The Company will update the market further on this process as appropriate”.

Ophir is increasingly focusing on its West African activity, with Equatorial Guinea as the heartland. It plans an early 2014 drilling offshore Gabon, targeting pre-salt reservoirs, but “2012 saw significant success in Equatorial Guinea, with three successful exploration and appraisal wells and continued progress towards commercialisation. Based on the results of the drilling, Ophir has increased its Block R contingent resources (2C) from 697BCF (116MMBOE) to 2.3TCF (390MMBOE) and has reduced the risk on the remaining estimated 10TCF (1.6BBOE) of inventory”, the company says.

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