Clifford Chance, Linklaters Lead on Tanzania Gas Deal
Clifford Chance and Linklaters have the lead roles on Singaporean oil and gas company Pavilion Energy Pte. Ltd.’s proposed $1.3 billion acquisition of a minority stake in three offshore natural gas blocks in Tanzania from London-based Ophir Energy Plc.
Pavilion, which is wholly owned by Singaporean sovereign wealth fund Temasek Holdings (Private) Ltd., is buying a 20 percent interest in Blocks 1, 3, and 4 in order to expand its sourcing for liquefied natural gas, according to a company statement. Ophir currently holds a 40 percent interest in those blocks.
An initial payment of $1.25 billion to Ophir, which focuses on upstream projects in Africa, will be followed by an additional consideration of $38 million after a final investment decision regarding the blocks is made in 2016. The first gas delivery is expected in 2020.
The deal, subject to regulatory and shareholder approval, is expected to close in the first quarter of 2014.
Clifford Chance Hong Kong partner Ashvin Seetulsingh and Tokyo partner Andrew Whan are acting for Pavilion on the deal.
Linklaters London partners Manzer Ijaz and Nick Rumsby are representing Ophir.