Deal Insight
Pavilion Energy buys into Tanzania deepwater with US$1.3 billion Ophir deal
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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 ...
Table of contents
- 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
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Key uncertainties
-
Strategic rationale
- Temasek/Pavilion Energy
- Ophir Energy
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- 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
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Pavilion Energy's share of gas production showing upside scenarios
- Tanzania Blocks 1, 3 and 4
What's included
This report contains:
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