Shell Offers USD 1.6 Billion for UK-based Cove Energy

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

The offer follows the decision announced by Cove in January to conduct a formal sale process for the company.

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.

Shell is one of the world’s largest LNG producers, with one of the most diverse LNG portfolios and access to strategic global markets with equity sales volumes of 18.83 mtpa of LNG in 2011.

Shell holds the largest equity share of LNG capacity among IOCs – currently holding some 20.5 mtpa of equity LNG capacity on-stream.

Adding Cove’s assets to Shell’s portfolio would strengthen and further diversify Shell’s existing global LNG portfolio of production and development projects.

[mappress]

LNG World News Staff, February 22, 2012; Image: Cove