Britain’s Cove Energy may sell Mozambican natural gas assets

13 December 2010

London, United Kingdom, 13 Dec – British company Cove Energy Plc may sells its natural gas assets in Mozambique before exporting liquid natural gas to Asia, the chief executive of the company said last week in London.

Together with Anadarko Petroleum Corp, which has the largest stake and is the operator, Mitsui & Co, Videocon Industries and Bharat Petroleum Corp, Cove Energy made three “large” natural gas strikes off the coast of Mozambique and its partners are analysing plans to produce liquid natural gas as soon as exploration begins.

Speaking to financial news agency Bloomberg, John Craven said that the company had a strategy of converting assets into cash even before exploration began, as there was “a lot of interest in what we are doing in East Africa.”

Exxon Mobil Corp, Statoil ASA and ENI Spa have already shown interest in the discoveries made off the coast of Mozambique, which were followed by two strikes by BP Group Plc in Tanzania. Some experts estimate that that area of Africa has reserves of over 31 billion barrels, or three times more than the Tupi field in Brazil, the biggest discovery in the Americas in the last 30 years.

According to statements made in November by the deputy chairman of Anadarko Petroleum, the results achieved so far with test wells in Mozambique show that resources are sufficient to start a natural gas project, with reserves estimated at 4 trillion cubic feet. (macauhub)