Mozambican government authorises acquisition of Cove Energy by Royal Dutch Shell

10 May 2012

Mozambique’s Natural Resources Ministry has authorised the indirect acquisition of Cove Mozambique and its assets by Shell Bidco, a 100 percent-owned subsidiary of the Royal Dutch Shell Group, the group said in a statement issued Wednesday in the Hague.

On 2 May, Shell Bidco published a document on the conditions offered for the acquisition of 100 percent of Ireland’s Cove Energy which, via Cove Mozambique, owns an 8.5 percent stake in a block in the Rovuma basin, where huge quantities of natural gas have been found.

In its statement Shell said that the acquisition of Cove Energy would introduce innovative technology to the business, a unique experiment in natural gas exploration and tried and tested sales strategies will offer significant vale both to Mozambique and the other partners.

The block, which is located in the Rovuma basin, has estimated natural gas reserves of 30 trillion cubic feet, which is enough to supply two processing units with a capacity of 5 million tons per year.

The concession-holders for area 1 are Anadarko Mozambique, with 36.5 percent, Mozambican state oil and gas company Empresa Nacional de Hidrocarbonetos (15 percent), Mitsui E&P Mozambique Area 1, Limited of Japan (20 percent), Videocon and Barat Petroleum of India (with 10 percent each) and Ireland’s Cove Energy with 8.5 percent. (macauhub)