BG stays quiet on Tanzania sale talk

Tanzania talk: BG reportedly considering selling gas block

UK player BG Group has declined to comment on rumours it is looking for a buyer for one of its three gas-rich blocks off Tanzania.

The London-listed company was reported to be in private talks on selling its 60% stake in Block 3 while retaining blocks 1 and 4, according to the Sunday Times newspaper.

A BG Group spokesman told Upstream: “We do not respond to rumour or speculation based on anonymous sources about what we may, or may not do, in managing the assets in our portfolio.”

BG operates the Tanzania block trio in partnership with Ophir Energy and Singapore-based Pavilion Energy, which bought 20% of the permits from Ophir for about $1.25 billion earlier this year.

The company estimates that it has uncovered 15 trillion cubic feet to date in gross resources on the blocks, where BG Group announced earlier on Wednesday that it had flowed more gas from Block 1's Mzia discovery.

BG beat forecasts earlier this month to report 23% rise in second-quarter earnings to $1.2 billion, driven by higher LNG volumes and higher realised prices in Asia and South America as well as increased oil production in Brazil.

The company was thrown into turmoil in April after its chief executive Chris Finlayson quit just 16 months into the job.

He was replaced temporarily by interim chief executive Andrew Gould, who has vowed to review assets due to the declining production and revenues in the months that preceded Finlayson’s departure.

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