Mozambique Gives Nod for Shell’s Cove Takeover Bid
The Government of Mozambique has given its consent to the offer made by Shell to acquire the company and its 8.5 per cent participating interest in Rovuma Offshore Area 1 which would arise on the takeover.
Cove said it “received written confirmation from the Government that it consents to the offer for Cove announced by Shell Bidco on 24 April 2012, should the offer be finalised.”
On April 24 Shell placed a $1.8 billion bid to acquire all shares of Cove Energy. On that occasion, Cove Energy’s Executive Chairman , Michael Blaha said: “Shell represents an excellent partner for all the stakeholders in the Rovuma LNG project given its extensive project development, operating and marketing experience in the entire LNG value chain.”
An 8.5 % stake in Mozambique Rovuma Offshore Area 1 is Cove Energy’s primary asset, which can be seen by the amount of interest shown by oil majors such as Shell, Thailand’s PTTEP and ONGC and Gail from India.
The Rovuma Project is a world class gas discovery and is estimated to have resources of up to 30 trillion cubic feet (“TCF”), including the Black Pearl oil prospect. In addition, Cove also has a 10% stake in the Rovuma Onshore Area in Mozambique, as well as 10-25% interests across seven blocks in Kenya offshore deepwater.
Offshore Energy Today Staff, May 10, 2012