BG Group has announced that it has informed the Tanzanian government of its intended withdrawal from its 60% equity interest in Block 3 with the company already having written off a $74 million exploration charge in its latest financial results.
The withdrawal could be as a result of the minimal success in discoveries with only one discovery since 2012 from the Papa-1 well which reached a water depth of approximately 2180 metres and reached a total depth of 5544 m subsea around 100 kilometres offshore Tanzania.
According to a statement by Ophir energy in early October the joint partner Ophir Energy has applied to take over BG’s interest and operatorship of the license.
“Ophir and Pavilion Energy have committed to move into the next exploration phase on Block 3. BG Group has decided to withdraw from Block 3. Ophir has, under the terms of the PSC, applied to enter the next PSC term under which the Company will hold an 80% interest and will formally re-assume operatorship from October 2014, while Pavilion Energy will retain 20%; the application is subject to Government approval.”