Royal Dutch Shell still interested in natural gas in Mozambique

19 July 2012

Anglo-Dutch group Royal Dutch Shell has entered into negotiations to buy part or all of US group Anadarko Petroleum’s 36.5 percent stake in an oil block in Mozambique, according to US financial news agency Bloomberg.

Citing sources linked to the process, Bloomberg reported that Anadarko Petroleum was reluctant to sell before it knew the results of additional prospecting being carried out at the block in the Rovuma basin and that is formally known as Rovuma-1.

If Anadarko Petroleum decides to sell, the potential buyers will have to spend around US$8 billion given that 8.5 percent of the same block still owned by Irish company Cove Energy received a proposal of US$1.7 billion from Royal Dutch Shell, which has since dropped out of buying it, and of US$1.9 billion from Thai group PTT Exploration & Production.

The sources added that although Royal Dutch Shell has given up trying to buy Cove Energy, this potential deal with Anadarko Petroleum has the added advantage of giving a future buyer control of the block as well as becoming its operator.

The remaining partners in the block, in which huge natural gas reserves have been found, are Japan’s Mitsui & Co., with 20 percent, India’s Bharat Petroleum Corporation Limited and Videocon, with 10 percent each, Mozambique’s ENH (15 percent) and Cove Energy (8.5 percent). (macauhub)