GAIL outbid in Tanzania

Vol 17, PW 9 (28 Nov 13) News in Brief
     

GAIL has been outbid by Singapore’s Pavilion Energy in the race to ‘farm-in’ at three blocks offshore Tanzania.

Ophir Energy announced on November 14 that it had farmed out 20% in Tanzanian blocks 1, 3 and 4 for $1.3bn (Rs8050cr) to Pavilion, which is owned by the Government of Singapore’s investment arm Temasek. GAIL originally planned to offer $800m (Rs5000cr) for a share in the project.

"Ophir wanted us to increase our bid,” confirms a GAIL source. “We refused and lost the deal.

” Ophir and partner BG group have 15-tcf of gas reserves at their blocks on the Tanzanian coast and want to construct an estimated $10bn LNG facility to export the gas to Asia, with first LNG deliveries expected to begin in 2020. According to an Ophir press release, Pavilion’s chief executive Seah Moon Ming said: “This (acquisition) is important for us as we work to develop an Asian LNG hub.

” Singapore imported its first LNG cargo earlier this year.