GAIL in talks with Ophir for stake in Tanzania gas assets

Asian economies have developed an interest in the huge gas discoveries in Tanzania to source long-term gas supplies

State-owned GAIL India Ltd has said it is in talks with Ophir Energy PLC for a stake in the latter’s offshore gas blocks in Tanzania.

The company said it is in negotiations for a stake and the talks would not be affected by Ophir’s 20 per cent stake-sale deal with Singapore-based Pavilion Energy last month.

“The talks are continuing. There are still options available with Ophir in Tanzania. They have sold 20 per cent but still have 20 per cent stake in three blocks,” GAIL Marketing Director Prabhat Singh said on the sidelines of Asia Gas Partnership Summit here.

Ophir Energy PLC had recently sold a part of a natural-gas discovery off the coast of Tanzania to Pavilion Energy in a $1.3 billion deal. The deal, the first major transaction in Tanzania’s natural-gas sector, was seen by some as a setback for GAIL’s plans in that nation.

Asian economies, including China and India, have developed an interest in the huge gas discoveries in Tanzania to source long-term gas supplies. Ophir Energy currently holds a 20 per cent stake in blocks 1, 3 and 4 and 80 per cent interest in block 7 apart from a 70 per cent interest in East Pande block, after the deal with the Singapore firm in Tanzania.

India currently meets as much as 75 per cent of its energy demand through imports. The country has been working on a plan to increase the geographical reach and acquire overseas assets.