One of the companies involved in the setting up of a liquefied natural gas plant in Tanzania has been acquired by the Royal Dutch Shell, leading to speculation it will take longer for gas drilling to begin.

The Royal Dutch Shell recently announced a mega takeover of British rival BG Group worth £47 billion, as the pair consolidate in a sector battered by sliding oil prices.

“The boards of Shell and BG are pleased to announce that they have reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued and to be issued share capital of BG,” reads a statement released by the Anglo-Dutch group.

READ: With fewer than 500 oil and gas wells, region is underexplored

The offer represents a premium of about 50 per cent compared with BG’s closing share price on Tuesday, costing Shell “approximately £47.0 billion” for its rival, it added.

“The result will be a more competitive, stronger company for both sets of shareholders in today’s volatile oil price world,” Shell chairman Jorma Ollila said in the statement.

Analysts said the acquisition is the most significant response yet to the slump in oil prices and could set in motion a series of mergers as the largest energy companies look to cut costs and restore profits.

BG chief executive Helge Lund said the deal “delivers attractive returns to shareholders and has strong strategic logic.”

He added: “BG’s deep water positions and strengths in exploration... will combine well with Shell’s scale, development expertise and financial strength.”

BG entered Tanzania in 2010 by entering into a partnership with Ophir. The company has successfully drilled 14 wells to date and already discovered an estimated gross resource of 15 trillion cubic feet (TCF).

BG, Statoil and their block partners signed a memorandum of understanding with the government of Tanzania last year for the development of the LNG Plant — a project estimated to cost up to $30 billion — to be developed in partnership with Norway’s Statoil and Exxon-Mobil.

The MoU covers the site selected for the LNG plant, acquisition of the site, the lease to be negotiated and management of any resettlement , according to the firm’s website.