Buying Cove would give Shell “significant potential for new LNG from recent gas discoveries offshore Mozambique”, the company said.

LONDON (AFP) – Royal Dutch Shell on Wednesday said it had offered to buy Cove Energy, a London-listed company with key operations in East Africa, for 922.4 million pounds (S$1.83 billion).

The cash offer worth 1.95 pounds per Cove share is set to become formal and accepted by the Cove board once energy giant Shell receives necessary approval from authorities in Mozambique, according to a statement.

‘Shell’s decision to announce this proposed offer for Cove fits with Shell’s strategic aim to drive forward with its investment programme, to deliver sustainable growth and to provide competitive returns to shareholders,’ the Anglo-Dutch group said in the statement.

‘East Africa is a major prospective hydrocarbon province, which has seen a significant increase in exploration activity in recent years. Shell already has interests in Tanzania, and the acquisition of Cove would mark Shell’s entry into exciting new hydrocarbon provinces in Kenya and Mozambique.’

AFP

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.