Mozambican government authorises acquisition of Cove Energy by Thai state group PTT

30 May 2012

Thai state oil group PTT Exploration & Production PCL said Tuesday it had received a document from the Mozambican Ministry for Mining Resources authorising it to buy Irish company Cove Energy.

In a statement the Thai group said that after receiving this authorisation it would now present it acquisition proposal to Cove Energy shareholders.

Cove Energy has been the focus of an acquisition battle since it announced it was for sale. So far two acquisition offers have been made, the first of which by Royal Dutch Shell and the second by PTT Exploration & Production.

Cove Energy’s main asset is an 8.5 percent stake in an oil block in Mozambique where the operating company, the Mozambican subsidiary of US oil group Anadarko Petroleum, has found huge natural gas reserves.

Last April the Mozambican authorities announced that profits on the sale of Cove Energy would be taxed at a rate of 12.8 percent. (macauhub)