Scirocco Energy said it has now received written confirmation from the Tanzania Petroleum Development Corporation (TPDC) that it will not exercise its right of first refusal over the Ruvuma asset.
The junior wants to sell its 25% stake in Ruvuma, with TPDC’s decision one of two pre-emption rights that need to be waived.
Talks are ongoing with ARA Petroleum Tanzania Limited (APT), which has the other pre-emption right, about whether it intends to exercise it or not.
Tom Reynolds, Scirocco's chief executive, added: "We thank TPDC for their constructive engagement throughout the process and we look forward to making further progress towards completing the transaction as discussions with APT continue in a similarly constructive manner.”
In June, Scirocco agreed to sell the 25% stake in Ruvuma, which primarily comprises the Ntroya gas field development project, to Wentworth Resources.