Block in Rovuma Basin, in Mozambique contains more natural gas than previously announced

16 March 2012

Cove Energy said Thursday in London that the estimate of the natural gas reserves in a block in the Rovuma Basin, in Mozambique, had been raised by 2 trillion cubic feet.

As a result of this addition, the estimate now stands at between 17 trillion and 30 million cubic feet of natural gas, thus further increasing the value of the 8.5 percent stake the company owns in the Area 1 block, covering 10,521 square kilometres.

After announcing it was for sale, Cove Energy has received two proposals from Royal Dutch Shell and Thailand’s PTT and a statement of intention from a consortium of two Indian state companies.

US group Anadarko Petroleum is the operator of Area 1 and has a 36.5 percent stake, with the remainder in the hands of Mitsui E&P Mozambique Area 1 (20 percent), BPRL Ventures Mozambique (10 percent), Videocon Mozambique Rovuma 1 (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent) and state Mozambican company Empresa Nacional de Hidrocarbonetos (ENH) with 15 percent. (macauhub)