GAIL India,the nations biggest natural gas distributor,has lost out on a bid to acquire Ophir Energys stake in gas blocks in Tanzania to Singapores Pavilion Energy.
GAIL was keen to buy part of Ophir Energy plcs 40 per cent stake in Blocks 1,3 and 4,which are estimated to hold an estimated 15 trillion cubic feet of gas reserves.
It was,however,outbid by Pavilion which offered to pay $1.3 billion for a 20 per cent stake in three gas blocks offshore Tanzania in East Africa.
GAIL had put a price of about $600 million for a 10 per cent interest.
Pavilion Energy,established by Singapores sovereign wealth fund Temasek earlier this year,in a statement last month announced the acquisition saying the transaction is scheduled to be completed in the first quarter of 2014.
The firm said it has entered into an agreement to purchase 20 per cent interest in Tanzania blocks 1,3 and 4 from Ophir Energy plc for a consideration of $1.288 billion.