Ophir Energy is cashing in to the tune of up to US $1.288 billion by offloading half of its stake in three of its high-profile blocks offshore Tanzania containing major gas discoveries to Asian outfit Pavilion Energy.

The independent confirmed it had entered into an agreement to sell a 20% stake in Tanzanian Blocks 1, 3 and 4 for a maximum consideration of $1,288 million. A total of $1,250 million is payable to Ophir on completion of the transaction, with a further contingent $38 million following a final investment decision related to the planned LNG development of the blocks, currently expected in 2016 and operated by the UK’s BG Group.

The transaction with Pavilion, a wholly-owned subsidiary of Singapore investment company Temasek, is expected to close in the first quarter of 2014.

Ophir also added separately that it has secured a rig for its 2014 operated multi-well drilling programme expected to start in February offshore Gabon with the drilling of the estimated 1 billion barrel pre-salt Padouck Deep prospect in the Ntsina Block. It has also been provisionally allocated a number of blocks in Gabon’s current deepwater licensing round, it added, with the award of these blocks subject to the successful conclusion of ongoing PSC negotiations.

Elsewhere, it continues to make progress on the development solution for commercialising its proven gas resources in Block R offshore Equatorial Guinea, with an FLNG solution “increasingly likely to be the preferred option,” it stated.

Nick Cooper, CEO of Ophir, said in Tanzania “appraisal activities have increased resource estimates and further derisked the commercial value of the potential development. We are about to enter a period of significant high-impact drilling that could be transformational for the company on success. This starts shortly with the Mlinzi Mbali-1 in Block 7, Tanzania and continues in Gabon with Padouck Deep, the first well on the pre-salt play, in Q1 2014 with further drilling planned during 2014.”