PTTEP poised to acquire Cove as Shell backs out

Moving forward: a PTT employee walks outside the company’s LNG terminal at the Map Ta Phut in Thailand. Subsidiary PTTEP is set to complete the takeover of Cove Energy and tap east Africa’s gas discovery boom

REUTERS/SCANPIX

By Amanda Battersby London

 19 July 2012 22:59 GMT

Thai national upstream company PTTEP looks set to acquire London-listed Cove Energy for $1.9 billion after rival bidder Shell withdrew from the race on 16 July.

PTTEP extended its earlier offer of 240 pence (US$3.43) per Cove share until 25 July, while Shell had previously put 220 pence share on the table.

Anglo-Dutch supermajor Shell had been expected by many to have matched or beaten PTTEP’s bid, given the potential to turn Mozambique in East Africa into a new liquefied natural gas hub.

Cove’s main asset is an 8.5% stake in the Anadarko-operated Area 1 off Mozambique, which has reserves that are now estimated at between 60 trillion and 100 trillion cubic feet of gas.

Shell’s decision not to continue…

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