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8 Pages

Pavilion Energy buys into Tanzania deepwater with US$1.3 billion Ophir deal


Pavilion Energy buys into Tanzania deepwater with US$1.3 billion Ophir deal

Report summary

Marking the first deal in Tanzania's proposed LNG project, Pavilion Energy, a Temasek Holdings subsidiary, will pay Ophir Energy US$1.288 billion for a 20% stake in Blocks 1, 3 and 4. Ophir retains 20% in the blocks.The offer is broadly in line with prices paid for equity in neighbouring Mozambique, on a $/mcf basis, and based on our underlying valuation of the deal. Our analysis indicates that the buyer is factoring upside beyond the initial development and resources discovered so ...

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This report includes 1 file(s)

  • Pavilion Energy buys into Tanzania deepwater with US$1.3 billion Ophir deal PDF - 1.76 MB 8 Pages, 5 Tables, 3 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
    • Key uncertainties
      • Project delays
      • Competition with Mozambique LNG
      • Partner alignment in a joint development with Block 2
  • Strategic rationale
    • Temasek/Pavilion Energy
    • Ophir Energy
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Wood Mackenzie's NPV sensitivities; development scenario, discount rate and LNG price (2013 terms)
    • Deal analysis: Table 3
  • Strategic rationale
    • Pavilion Energy's share of gas production showing upside scenarios
    • Tanzania Blocks 1, 3 and 4
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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