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CharlieHarper 15 Jan 2019

Statement re possible offer for Ophir by PT Medco [link] best of luck

CharlieHarper 15 Jan 2019

Statement re possible offer for Ophir by PT Medco Operations and Trading Update Tue, 15th Jan 2019 070 RNS Number : 0724N Ophir Energy Plc 15 January 2019 15 January 2019 Ophir Energy plc (“Ophir”, the “Group” or the “Company”) Operations and Trading Update Ophir provides the following update on its trading and operations for the twelve month period ending 31 December 2018. Alan Booth, Interim CEO of Ophir, commented: "With the successful integration of the Santos South East Asian assets, Ophir has significantly strengthened its production and development portfolio. We are now well positioned to generate significant free cash flow going forward. Our underlying business and balance sheet remain robust. "As we announced on 5 January, the Block R licence in Equatorial Guinea has not been extended. We are in negotiations to rationalise parts of our frontier exploration portfolio with the potential to not only bring in cash, but also importantly reduce our future exploration capital commitments and further improve our liquidity position. We remain mindful of the potential value of our gas assets in Tanzania, notwithstanding the uncertainty over timing for their development. “As outlined in our strategy statement on 13 September, we are building a company with increasing cash generation, and declining risk capital expenditure. Our future investment decisions will continue to focus on maximising returns to shareholders.” Summary of 2018 Financials The below table provides a summary of the estimated financial information in this release on both a pro-forma and IFRS basis based on the company’s unaudited preliminary financial results: Units Proforma Basis(1) IFRS Basis(2) FY 2018 (E) FY 2018 (E) Production (boepd) 29,700 17,200 Acquisition cost (with effective date of 1 January 2018)(3) ($'millions) 205 149 Capital expenditure (including pre-licence expenditures) ($'millions) 122 117 Net debt ($'millions) 35 35 Gross liquidity (cash and undrawn debt facility)(4) ($'millions) 390 390 Full year 2018 pro forma basis assuming accounting for the Santos acquisition from the effective date of 1 January 2018. Full year 2018 IFRS basis with acquisition accounting for the transaction from the closing date of [6 September 2018], and as will be reported in the company’s consolidated 2018 financial statements. Net cash settlement in 2018 for acquisition of Madura, Sampang and Block 12W was $149 million. The final accounting for the acquisition will recognise the measurement of the acquisition date fair values of the identifiable assets and liabilities. This will likely include non-cash adjustments for deferred tax, decommissioning, etc. as a consequence of the transaction. Gross liquidity is calculated after repayment of the Bridge Facility of $103 million on 3 January 2019 2018 Financial Highlights: (all 2018 figures, unless otherwise stated, are on a pro-forma basis accounting for the Santos acquisition from the effective date of 1 January 2018) · Capital expenditure (including pre-licence expenditures) estimated at $122 million, below previous guidance of $145 million. · Opex estimated at $12 per boe highlighting the low cost and cash generative nature of our expanded production base. · Year-end net debt estimate reduced to $35 million (from $65 million previously) as a result of lower capital expenditure. · Cash and cash equivalents estimated at $323 million with gross liquidity available (cash and undrawn debt facilities and after assuming repayment of the Bridge Facility on 3 January 2019) estimated at $390 million. The 2018 leverage ratio (gross debt/cash flow from operations before working capital adjustments) is estimated at 1.5 and 2018 year-end gearing ratio (gross debt divided by gross debt plus equity) is estimated at 32%. On a net debt basis, the leverage ratio is estimated at 0.2 and the gearing ratio at 5%. The company’s balance sheet therefore remains strong at year-end 2018. 2018 Corporate & Operational Highlights: · Acquisition of interests in the Madura and Sampang PSCs (Indonesia) and Block 12W (Vietnam) from Santos for $205 million materially increased production and cash flow. These assets have performed better than expected with the assets returning cash flow of approximately $110 million in full year 2018, representing approximately half the initial purchase price. · Daily production averaged 29,700 boepd, 8% ahead of guidance with Madura, Sampang and Block 12W contributing 18,000 boepd. · De-risked the next phase of growth in the Sampang and Madura PSCs through the FID of the Meliwis development and the Paus Biru exploration success. These developments will not only bring new fields in the licences on stream but also extend the economic life of the existing fields. · Continued to makes progress towards rationalising the wider frontier exploration portfolio. A series of commercial agreements are under negotiation which, if successful, will reduce forecast exploration spend significantly in 2019 as well as reduce the future exploration commitment spend from its current level. · Commenced the relocation of the corporate functions from London to Southeast Asia with the plan to complete the move by September 2019, yielding further significant costs savings during the coming year. The company’s 2018 financial statements are likely to include provisions of approximately $10 million forrestructuring and relocation costs. · Completed refinancing and expansion of Reserve Based Lending Facility (RBL). The RBL was increased by $100 million to $350 million with the maturity also extended by 18 months to 31 December 2025. The borrowing base amount under the RBL was closed-out with Lenders at 31 December 2018 at $322 million. The expanded RBL was drawn by a further $100 million to $250 million on 2 January 2019 to fully repay the outstanding amount of $103 million against the $130 million 18 months Bridge Facility. 2019 Outlook and Guidance (assuming an average Brent price of $61 per bbl) · Daily production for 2019 is forecast in line with previous guidance at 25,000 boepd. · The company has two oil price hedges in place for 2019: for the period to 6 September 2019, the company sold a Brent swap at approximately $70 per barrel and purchased a Brent call at approximately $78 per barrel for 2,000 bpd; and for the full calendar year 2019, the company sold a Brent swap at approximately $56 per barrel and purchased a Brent call at approximately $66 per barrel for 2,000 bpd. · Opex per bbl is expected to be $16 per boe, an increase on the previous year due to workover drilling on the Kerendan field and ESP replacements for three wells on the Bualuang field. · Capital expenditure is expected to be approximately $150 million assuming various farm-outs are closed successfully. The majority of the spending for 2019 (approximately $110 million) is development and production expenditure focused on growing our production and cash flow, including both Bualuang and Madura (Meliwis development). The balance of spend is provided for exploration, predominantly exploration commitments as the company manages its exit from its deep water portfolio. The company is seeking to reduce those commitments further where possible. · Year end net debt is forecast at $70 million, below our previous guidance of $105 million. · Cash and cash equivalents, and gross liquidity, at year end 2019 are forecast at $230 million. This assumes the company reduces its total debt exposure by 2019 year-end to $300 million giving rise to a 2019 leverage ratio (gross debt/cash flow from operations before working capital adjustments) of 1.5 and 2019 year-end gearing ratio (gross debt divided by gross debt plus equity) of 30%. On a net debt basis, the leverage ratio is forecast at 0.5 and the gearing ratio at 10%, demonstrating conservative leverage. best of luck

CharlieHarper 14 Jan 2019

Statement re possible offer for Ophir by PT Medco Mon, 14th Jan 2019 070 RNS Number : 9430M Ophir Energy Plc 13 January 2019 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE “CODE”) AND DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. THERE CAN BE NO CERTAINTY THAT ANY OFFER WILL BE MADE. For immediate release 14 January 2019 Ophir Energy plc (“Ophir”) Rejection of the possible offer for Ophir by PT Medco Energi Global PTE Ltd (“Medco Global”) (a wholly-owned subsidiary of PT Medco Energi Internasional Tbk (“Medco”)). The Board of Ophir has now met formally to consider the possible offer announced by Medco on 11 January 2019 to acquire the issued and to be issued share capital of Ophir at an offer price of 48.5 pence per Ophir ordinary share. The Board has unanimously rejected the proposal as it undervalues Ophir. On 15 January 2019, Ophir will provide an update on its trading and operations for the twelve month period ending 31 December 2018. This announcement has been made by Ophir without the approval of Medco or Medco Global. As previously stated, in accordance with Rule 2.6(a) of the Code, Medco Global must, by no later than 5.00 pm GMT on 28 January 2019 (the “Deadline”) either announce a firm intention to make an offer for Ophir under Rule 2.7 of the Code or announce that it does not intend to make an offer for Ophir, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. The Deadline will not apply in circumstances where either: (a) it has been extended with the consent of the Takeover Panel in accordance with Rule 2.6© of the Code; or (b) Rule 2.6(b) of the Code applies, by virtue of a firm intention to make an offer for Ophir having been announced by another offeror prior to the Deadline. Enquiries Ophir + 44 (0) 20 7811 2400 Geoff Callow, Head of IR and Corporate Communications Morgan Stanley (Financial Adviser and Corporate Broker to Ophir) +44 (0) 20 7425 8000 Andrew Foster Shirav Patel Investec (Corporate Broker to Ophir) + 44 (0) 20 7597 4000 Chris Sim Jonathan Wolf Brunswick (PR Adviser to Ophir) + 44 (0) 20 7404 5959 Patrick Handley Wendel Verbeek About Ophir: Ophir is an independent upstream oil and gas exploration and production company. It is listed on the London Stock Exchange (LEI: 213800LAZOZTKPAV258). Website In accordance with Rule 26.1 of the Code, a copy of this announcement will be available (subject to certain restrictions relating to persons resident in restricted jurisdictions) on Ophir’s website at [link] The content of this website is not incorporated into, and does not form part of, this announcement. Financial advisers Morgan Stanley & Co. International plc (“Morgan Stanley”) which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK is acting as financial adviser exclusively for Ophir and no one else in connection with the matters set out in this announcement. In connection with such matters, Morgan Stanley, its affiliates and their respective directors, officers, employees and agents will not regard any other person as their client, nor will they be responsible to any other person for providing the protections afforded to their clients or for providing advice in connection with the contents of this announcement or any other matter referred to herein. Investec Bank plc (“Investec”) is authorised by the Prudential Regulation Authority and regulated in the United Kingdom by the Financial Conduct Authority and the Prudential Regulation Authority. Investec is acting exclusively for Ophir and no one else in connection with the matters set out in this announcement. In connection with such matters, Investec will not regard any other person other than Ophir as their client, nor will Investec be responsible to anyone other than Ophir for providing the protections afforded to clients of Investec or for providing advice in relation to the contents of this announcement or any other matter referred to in this announcement. Disclosure requirements of the Code Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure. Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3. Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4). Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel’s website at [link] including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Takeover Panel’s Market Surveillance Unit on +44 (0)20 7638 0129. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. END OFDLXLLFKFFFBBX Related Shares: Ophir Energy (OPHR) 1 2 3 4 5 6 7 8 9 10 11 Next Finance News Page Date Source Headline Category 14-Jan-19 070 RNS Statement re possible offer for Ophir by PT Medco Mergers, Acquisitions and Disposals 11-Jan-19 17:54 RNS Form 8 (OPD) (Ophir Energy plc) Mergers, Acquisitions and Disposals 11-Jan-19 15:20 RNS Form 8.3 - Ophir Energy Plc Mergers, Acquisitions and Disposals 11-Jan-19 14:36 BUS Form 8.3 - Ophir Energy PLC Mergers, Acquisitions and Disposals 11-Jan-19 143 RNS Form 8.5 (EPT/RI) - Replacement of Ophir Energy Mergers, Acquisitions and Disposals 11-Jan-19 13:41 RNS Statement re the potential acquisition of Ophir Company Announcement - General 11-Jan-19 13:26 EQS Form 8.3 - The Vanguard Group, Inc.: Ophir Energy plc Mergers, Acquisitions and Disposals 11-Jan-19 12:48 RNS Form 8.3 - [Ophir Energy] Mergers, Acquisitions and Disposals 11-Jan-19 10:53 RNS Possible Offer for Ophir Energy plc Mergers, Acquisitions and Disposals 11-Jan-19 08:38 RNS Form 8.5 (EPT/RI) - Ophir Energy plc Mergers, Acquisitions and Disposals 11-Jan-19 08:36 RNS Form 8.5 (EPT/RI) - Ophir Energy plc Mergers, Acquisitions and Disposals 10-Jan-19 15:28 RNS Form 8 (OPD) (Ophir Energy plc) Mergers, Acquisitions and Disposals 10-Jan-19 15:20 RNS Form 8.3 - Ophir Energy plc Mergers, Acquisitions and Disposals 10-Jan-19 13:56 BUS Form 8.3 - Ophir Energy PLC Mergers, Acquisitions and Disposals 10-Jan-19 13:52 RNS Form 8.5 (EPT/RI) - Replacement of Ophir Energy Mergers, Acquisitions and Disposals 10-Jan-19 13:45 RNS Form 8.5 (EPT/RI) - Replacement of Ophir Energy Mergers, Acquisitions and Disposals 10-Jan-19 102 RNS Form 8.3 - Ophir Energy Plc Mergers, Acquisitions and Disposals 10-Jan-19 08:58 RNS Form 8.5 (EPT/RI) - Ophir Energy plc Mergers, Acquisitions and Disposals 10-Jan-19 08:57 RNS Form 8.5 (EPT/RI) - Ophir Energy plc Mergers, Acquisitions and Disposals 09-Jan-19 15:20 RNS Form 8.3 - Ophir Energy plc Mergers, Acquisitions and Disposals 09-Jan-19 150 RNS Form 8.3 - Ophir Energy plc Mergers, Acquisitions and Disposals 09-Jan-19 13:32 RNS Form 8.3 - [Ophir Energy] Mergers, Acquisitions and Disposals 09-Jan-19 13:29 RNS Form 8.5 (EPT/RI) - Replacement of Ophir Mergers, Acquisitions and Disposals 09-Jan-19 11:43 RNS Rule 2.9 Announcement Mergers, Acquisitions and Disposals 09-Jan-19 10:13 RNS Form 8.3 - Ophir Energy Plc Mergers, Acquisitions and Disposals 09-Jan-19 09:56 RNS Form 8.5 (EPT/RI) - Ophir Energy plc Mergers, Acquisitions and Disposals 09-Jan-19 09:51 RNS Form 8.5 (EPT/RI) - Ophir Energy plc Mergers, Acquisitions and Disposals 09-Jan-19 090 RNS Form 8.3 - Ophir Energy Plc Mergers, Acquisitions and Disposals 08-Jan-19 15:20 RNS Form 8.3 - Ophir Energy plc Mergers, Acquisitions and Disposals 08-Jan-19 15:16 RNS Form 8.3 - Ophir Energy plc Mergers, Acquisitions and Disposals 1 2 3 4 5 6 7 8 9 10 11 Next Finance News Page Share Price, Share Chat, Stock Market news at lse.co.uk FREE Member Services Setup a personalised Watchlist and Virtual Portfolio. Gain access to LIVE real-time Regulatory News (RNS). View more Trades, Directors’ Deals, and Broker Ratings. Share Price, Share Chat, Stock Market news at lse.co.uk Home | Contact Us | About Us | Advertise with Us | Sitemap | Terms & Conditions | Cookies | Privacy | Mobile Site Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site, we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, ‘as-is’, and you use it at your own risk. The contents of all ‘Chat’ messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates. London South East does not authorise or approve this content, and reserves the right to remove items at its discretion. best of luck

CharlieHarper 12 Jan 2019

Fortuna finance Indonesia’s Medco Energi could offer 340 mln stg for Britain’s Ophir Jan 11 (Reuters) - Indonesia’s Medco Energi Internasional Tbk PT said on Friday its unit was continuing talks with Britain’s Ophir Energy for a possible 340 million pounds ($435.88 million) all-cash takeover. Medco said shareholders of Ophir, an upstream oil and gas exploration and production company focused on Asia and Africa, would receive 48.5 pence in cash for each Ophir share. Medco under British takeover rules had until Jan. 28 to make a firm offer or walk away. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shinjini Ganguli) U.S. – 11 Jan 19 Indonesia's Medco Energi could offer 340 mln stg for Britain's Ophir Indonesia's Medco Energi Internasional Tbk PT said on Friday its unit was c... best of luck

vprt 11 Jan 2019

Shotry/onedb Shotry: Look again, with the heading “Possible Offer…” at 10:53am today. Important news easily drowns in the flurry of shareholding notices these days… Medco are suggesting they might bid 48.5p in cash, not agreed by Ophir. Good to get a number out there, hopefully another party will be attracted and create some competition. But not sure how likely that is given that it is trading at a discount, rather than a premium, to the 48.5p.

Shotry 11 Jan 2019

Shotry/onedb I don’t see an RNS, but SP just jumped over 2p. Something going on and some news leaking?

Shotry 10 Jan 2019

Shotry/onedb I’ve re-entered today at around 43.7. Some positive SP action today and it looks as though the SP will end on a high.

CharlieHarper 07 Jan 2019

Fortuna in Golar focus despite OneLNG hit Ophir Energy: Block R Licence, Equatorial Guinea Mon, 7th Jan 2019 070 RNS Number : 3020M Ophir Energy Plc 07 January 2019 5 January 2019 Ophir Energy plc (“Ophir”) Block R Licence, Equatorial Guinea Ophir announces that it has received notification from the Equatorial Guinea Ministry of Mines and Hydrocarbons that the Block R Licence, which contains the Fortuna gas discovery, will not be extended following expiry of the licence on 31 December 2018. As a consequence, there will be an additional non-cash impairment of the asset, expected to be around $300 million, in Ophir’s full year financial results following the impairment taken in the half year results reported in September 2018. The Board remains focused on implementing the strategy outlined in its announcement on 13 September 2018 and options available to maximise value for shareholders. In this regard, the Board would highlight the recent updates it has provided to the market in respect of its Southeast Asia assets, which it believes demonstrate the underlying quality of these assets including its recent acquisition of Santos. As outlined in our announcement of 31 December 2018, Ophir and Medco have entered into discussions about a possible cash offer to be made by Medco for the entire issued and to be issued share capital of Ophir. Our discussions with Medco have taken place in the shared knowledge that there were a number of potential outcomes with respect to our Fortuna asset, and these discussions continue. The next scheduled announcement by the Ophir will be our pre-close trading statement on 15 January 2019 when we shall update investors on the progress made throughout our portfolio and the advances to our production and cashflow base in Southeast Asia. Alan Booth, Interim Chief Executive of Ophir, commented: "It is disappointing that the Ministry has decided not to extend the licence, despite the amount of effort and cost dedicated to the delivery of the project and especially as we were still talking to highly credible potential co-investors. Nevertheless, we will continue to work constructively with the authorities in Equatorial Guinea. I should like to thank everyone in the Ophir project team; you gave this your very best endeavours. Looking ahead, the Group’s cashflow, capital commitments and growth prospects will be focused in Southeast Asia, where we have built a robust operating platform capable of delivering value to shareholders." best of luck

CharlieHarper 02 Jan 2019

Takeover Shell for Tanz@$300m…Fortuna license extension might realise $300m for Ophir probably not…all the rest $300m…minus debt, sundries, bar tabs, etc and $1 a share give or take…a pittance when you think Fortuna would realise around $600m a year when fully up and running @ 30%…taken out by the greedies, Nick Cooper the mole in the camp and Schloomburger & co the executioners. Durty bassas… best of luck

vprt 02 Jan 2019

Takeover Yes, and let us hope that a firm bid crystallises from this by 28 January, and also that clear outcomes on Fortuna (license extension or not, any deal) and Mexico block 5 (Murphy will hopefully spud it very soon) will reduce uncertainty for other bidders to come to the table, both bidders for the whole company and for individual assets (Fortuna, Tanzania, Mexico if a discovery). I believe Morgan Stanley will now be shopping Ophir around quite aggressively to a wide range of potential buyers, if they were not already, and that value will be maximised by 2 or more deals in this case. Just too bad the oil price is so low at the moment!

Ripley94 02 Jan 2019

Soco International. OPHR… XXXX RNS possible offer . Good start to 2019 first trading day, this is up 40 % just below my last top up over 10 months ago .

chummer 01 Jan 2019

Takeover Hopefully finally good news as Ophir announce a possible takeover!

CharlieHarper 24 Dec 2018

Murphy Oil Block 5 An update on block 7 GOM explaining why our block 5 was the most hotly contested block in the recent licensing round. “U.S. oil firm Talos Energy has started drilling of an appraisal well at the Zama field, a two-billion barrel find discovered in 2017.” Offshore Energy Today Talos spuds appraisal well at giant Zama discovery (Mexico) U.S. oil firm Talos Energy has started drilling of an appraisal well at the Zama field, a two-billion barrel find discovered in 2017. Westwood Global Energy Group – 29 Aug 18 Frontier and Emerging deepwater plays of the Gulf of Mexico – will they deliver?... A new Westwood report reviews exploration potential across both the US and Mexican sides of the deep water Gulf of Mexico. best of luck

vprt 18 Dec 2018

2 sticks and a balloon but its a win No worries - good try. In another effort to find a light in the long and dark tunnel we are in - beyond waiting for the Murphy well in Mexico in Q1 - there is actually a new glimmer of hope that the Tanzania assets will once again become hot (or lukewarm) property, given fresh discussions between the government and the big operators including our partner Shell: Tanzania ups the pace on LNG project Equinor, ExxonMobil and Shell are among the interested parties Tanzania’s efforts to speed up talks with Equinor and ExxonMobil over of a Host Government Agreement (HGA) to develop an onshore liquefied natural gas (LNG) project suggests a renewed sense of urgency, as the government seeks to ensure the country does not lose out altogether to neighbouring Mozambique as a regional gas export hub. Equinor says it has received signals from Tanzanian president John Magufuli that he wants to start talks with the two companies on the development of a proposed onshore LNG project. Contacts have been continuing off and on for four years, but there seems to be optimism over the chances of progress this time around. The companies hold the license for Block 2, off southern Tanzania, which has reserves estimated at more than 20 trillion cubic feet (cf) of gas in place. Equinor is operator with 65%, while ExxonMobil holds 35%. “Negotiations have not yet started and a timeframe has not yet been put in place. From our side we are committed to contribute to an efficient execution of the negotiations,” an Equinor spokesman told Petroleum Economist. Earlier, this year, it was reported that ExxonMobil wanted to sell its stake in Block 2 so that it could focus its East African activities on its planned LNG project in Mozambique. However, it remains committed to the Tanzanian negotiations at this stage, according to Equinor. Shell keen to participate Shell, which has made discoveries on adjacent acreage, is eager to participate in any export facility. The company and its partner Ophir Energy are developing the Blocks 1 and 4, which are estimated to hold around 16 trillion cf of recoverable gas. “It is our understanding that the objective of all partners involved in the Tanzania LNG project is to have a single, joint project. We share the view that such a joint integrated project will result in a globally competitive LNG project, which will yield far greater benefits for the host country than a small project can,” a Shell spokesperson told Petroleum Economist. The Anglo-Dutch major said it was awaiting a decision from the Tanzanian government on the next steps, but that it was “keen to make progress”. Equinor has not detailed the nature of any talks with Shell, but said it continues “to have a good relationship with the other international companies involved”. Long lead time The export facility, which has been under discussion since 2014, is likely to be built on the coast at Lindi in southern Tanzania, adjacent to the country’s offshore discoveries in its portion of the Rovuma Basin. Across the border in Mozambique, the basin has yielded gas discoveries leading to reserve estimates of well over 150 trillion cf. These are already being targeted by one floating LNG project led by Eni, which is under construction, and two planned LNG export projects, led by Andarko and ExxonMobil. On its website, Equinor suggests the Tanzanian project could take the form of a 7.5mn tonne a year facility, and that it could take around nine years to progress from signing an HGA via a final investment decision to first production. However, the spokesman said it was too early in the current round of talks to provide concrete details about the technical aspects, timing and costs of the project. Tough talking Magufuli’s government has sought to maximise benefits from energy and mining projects for the East African nation over recent years. It has insisted that export projects have a strong focus on domestic infrastructure development, as well as seeking to enforce tight regulation and negotiating greater government revenues. Equinor’s production sharing agreement for Block 2 requires 10% of gas produced to go to the local market, potentially doubling current electricity production in Tanzania. Back in the post-2014 era of low hydrocarbons prices, such requirements deterred investors with curtailed spending budgets from taking the plunge in Tanzania. By contrast, in Mozambique, the government sought to get the LNG sector off the ground by allowing a greater share of the gas from the first projects to be exported, helping to push along the three LNG projects there. Eni’s FLNG project in Mozambique, already under construction, is due to come onstream in 2022, with Andarko and ExxonMobil both targeting first production in the mid-2020s. By contrast any Tanzanian project would seem unlikely to be producing before the end of the 2020s at the earliest, even if the current round of talks is concluded rapidly.

BarleyBaron 17 Dec 2018

2 sticks and a balloon but its a win Evening Charlie. Fortuna decision not far away. What’s your reckoning… License extension or write off. I’m in for an extension. We cant afford to let this slip away from us and get taken off our hands for cheap. It’s not fair. Production is decent, Santos deal was brave but working. Looking better but look where we sit sp wise. Lets see what happens. Thanks for the links and info. Been off training for an extreme marathon for a month nearly now and just back home for two days. Mountain climbing in the Highlands. Starting to get cold now but I am so fit I could crack a walnut with me buns. Hope you and everybody else brave and mad who persevere with this share a Very Merry Christmas. Baron.

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