Shell targets key place at Mozambique table

Bearing Fruit: Shell has taken a bite of Mozambique's upstream sector after buying Cove Energy.

AFP/SCANPIX

By IAIN ESAU London

 24 February 2012 01:33 GMT

ANGLO-Dutch giant Shell is primed to play a major role in Mozambique’s nascent liquefied natural gas industry after making a £992.4 million ($1.56 billion) cash bid to acquire London-listed junior Cove Energy.

Cove’s high-profile asset is a stake in Anadarko Petroleum’s prolific Offshore Area 1 gas play in Mozambique.

The supermajor’s move is a surprise because most analysts had expected Cove’s small 8.5% interest in Area 1 would only interest Asian players.

As a result, industry sources now suggest Shell will likely further boost its stake in Area 1 by perhaps acquiring some of Anadarko’s operating interest, which the US player has hinted at offloading.

This view was confirmed by a Shell spokesman, who told Upstream: “There may be opportunities to build a higher stake in…

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