Indian state group Oil India analyses potential acquisition of company with natural gas assets in Mozambique

13 January 2012

Mumbai, India, 13 Jan – Indian state group Oil India Ltd. is analysing a potential acquisition of British company Cove Energy, which has a stake in a natural gas field with proven reserves in Mozambique and which was put on sale last week, financial news agency Bloomberg reported.

Citing sources close to the process, Bloomberg said that the Indian state company was analysing the documents for the sale of Cove Energy, which ahs a market capitalisation of 620 million pounds (US$948 million), and acquisition proposals may be in excess of US$1.2 billion.

In December Cove Energy announced it planned to sell its 8.5 percent share in the Rovuma 1 block, off the Mozambican coast and operated by US group Anadarko Petroleum.

Anadarko Petroleum announced recently it had found natural gas reserves estimated at 30 trillion cubic feet in the deepwater block and that a project was underway for liquefaction of the gas extracted there for export to a number of different markets.

As well as its stake in the Rovuma-1 block, Cove Energy also has onshore assets in Mozambique, onshore and offshore in neighbouring Tanzania and offshore in Kenya. (macauhub)