PTTEP 'to bankroll Cove for $1.3bn'

Opening wallet: PTTEP for gas investment

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Steve Marshall ,

News Wires

 11 December 2012 09:34 GMT

Thailand’s PTT Exploration & Production (PTTEP) intends to pump $1.3 billion into the operations of newly acquired Cove Energy over the next five years after raising $3 billion in the country’s biggest equity sale ever, according to a report.

The $1.9 billion acquisition of the UK independent, agreed earlier this year after a bidding battle with Shell, gives PTTEP access to massive gas discoveries off East Africa held through Cove’s 8.5% stake in  Anadarko Petroluem-operated Area 1 in Mozambique’s offshore Rovuma basin.

The deal also includes Cove’s small stakes in seven licences off Kenya.

“From now on, we will use the proceeds from the equity sale and cash flow to finance our investments,” PTTEP chief executive Tevin Vongvanich was reported as saying by Reuters.

Earlier this month, the company raised 92.3 billion baht…

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