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Project Insights

Ophir’s prized Tanzanian assets almost worthless

Medco Energi has valued Ophir at just $511 million, giving another indication that the deepwater gas in the company's Tanzania blocks might just stay in the ground Medco Energi has valued Ophir at just $511 million, giving another indication that the deepwater gas in the company's Tanzania blocks might just stay in the ground.
By Leigh Elston 7 February 2019 Middle East & Africa / Exploration & Production 0 33915
Ophir Energy activity offshore Tanzania. (Ophir Energy)

Key issue: Ophir Energy’s decision to accept a $511 million buyout by Medco Energi on 30 January highlights how far its fortunes – and those of Tanzania – have fallen in the past six years.

Interfax analysis: Tanzania’s government will want to squeeze as much as it can in capital gains tax (CGT) from Indonesian oil and gas group Medco Energi’s acquisition of UK-based Ophir Energy, but deadlocked negotiations over Tanzania’s LNG project mean the country’s deepwater gas is now considered almost worthless.

Should the government...