India: ONGC, GAIL Confirm Interest in Cove Energy

India’s ONGC Videsh Limited (OVL) and GAIL confirmed that they are currently participating in the formal sale process announced by Cove Energy in January.

“At this stage, no decision has been made by ONGC and GAIL whether to make an offer for Cove or the price at which any such offer may be made. Therefore, there can be no certainty that ONGC and GAIL will make an offer for Cove, or as to the terms of any offer,” the two companies said in a statement.

Shell Exploration & Production said last week that it has made an offer of £992.4 million ($1.6 billion) for UK-based Cove Energy.

Cove has an 8.5 percent stake in the Rovuma Offshore Area 1, in Mozambique, where several gas discoveries were made by the Rovuma Offshore Area 1 partnership from 2010-2012.

These discoveries will underpin a large LNG project planned by the partnership.

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LNG World News Staff, February 29, 2012; Image: Cove