GAIL India in Talks to Buy Stake in Ophir's Tanzania Gas Assets

State owned GAIL India is looking to buy anywhere between 10% and 30% stake in five Tanzania gas blocks held by Ophir Energy with in-place reserves of over 40 trillion cubic feet (tcf), reported Financial Express newspaper.

Sources told Financial Express that a 10% share in these blocks may be worth $600 million.

A GAIL official confirmed the development, but refused to divulge further details as a deal has yet to be finalised, the newspaper added.

Ophir has interests in five blocks with an area of 33,078 sq km in water depths up to 3,000 metres. In Tanzania, Ophir has a 40% interest in blocks 1, 3 & 4, an 80% operating interest in block 7 and a 70% operating interest in East Pande. Blocks 1, 3 and 4 are a joint venture with the BG Group, which holds 60% and operates the block.

Indian energy firms have shown interest in acquiring natural gas assets in East Africa to source the fuel for growing domestic demand. Earlier this year ONCG Videsh and Oil India acquired stake in Mozambique gas assets.

ONGC Videsh (OVL) is also looking to make inroads into Tanzania, Financial Express said.

Oil ministry officials told the newspaper that OVL will bid in the fourth licensing round for seven offshore and one onshore oil and gas blocks in Tanzania, starting October 25.

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