UK-based explorer Ophir Energy has completed the sale of 20% interest in its Tanzanian LNG development blocks to Pavilion Energy.
The company raised $1,255million through the transaction, with a further $38 million expected following the final investment decision for the development of blocks 1,3 and 4, expected in 2016.
The LNG export facility, expected to start operation in 2020, would be the first in Tanzania, where reservoir estimates have been recently upped to 15.7 trillion cubic feet.
Successful exploration and appraisal programme in the blocks increased Ophir’s contingent reserves in 2013 by 254million of barrels of oil estimate (boe).
“We are delighted to welcome Pavilion Energy into the Tanzanian LNG development across Blocks 1, 3 and 4,” said Nick Cooper, Ophir Energy’s chief executive.
“The partial monetisation of our interests is in keeping with Ophir’s strategy of minimising exposure to development capital expenditure and realising the value created from exploration success at the appropriate time.”
The proceeds from the transaction will fuel further investment in new projects targeting wells in Tanzania, Gabon and Equatorial Guinea, the company said.