Friday 25 May 2018

Shell in €1bn bid for Cove Energy

IRISH exploration group Cove Energy has been offered £992.4m (€1.17bn) from Royal Dutch Shell for its business.

The Dublin-based firm has made a number of significant gas discoveries in east Africa. Shell is offering 195 pence for each Cove share, a 26pc premium to the closing price yesterday, according to a statement.

Cove's main asset is an 8.5pc stake in the Rovuma Offshore Area 1, in Mozambique, where operator Anadarko said recoverable reserves could top 30 trillion cubic feet of natural gas.

The project partners plan to build plants to freeze the gas into liquefied natural gas (LNG) and ship it to Asian markets.

The discovery followed a 2009 deal in which the explorer, formerly known as Lapp Plats, acquired an interest in three licences in Tanzania and Mozambique that were thought to have significant potential. Analysts said Royal Dutch Shell was eager to get into this specific market.

Cove's shares jumped 25pc on the back of the news.

Promoted articles

Entertainment News