Shell withdraws bid for LNG developer Cove Energy

16 July 2012 17:01  [Source: ICIS news]

LONDON (ICIS)--Shell will not raise its offer or take part in an auction process for UK-based Cove Energy, the Anglo-Dutch energy giant said on Monday.

Thailand-based energy major PTT also bid for Cove Energy earlier this year valuing the company at £1.22bn ($1.91bn/€1.54bn).

Shell had in February bid 222 pence in cash a share for Cove Energy which is developing Mozambique’s liquefied natural gas (LNG) potential and is exploring for gas in the region. PTT’ exploration and production arm had offered 240 pence a share for the firm.

An auction process for Cove Energy was due to start this week.  

Cove Energy has an 8.5% interest in the Mozambique Rovuma Offshore Area 1 (Rovuma project), which is estimated to have a resource potential of some 12 trillion cubic feet (tcf) of gas, and has plans to come to a final investment decision on a liquefied natural gas (LNG) project by the third quarter of 2013.

($1 = £0.64, €1 = £0.79)

By: Nigel Davis
+44 20 8652 3214

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