Cove oil boost could trigger a bidding war
COVE Energy yesterday announced a new oil find in Mozambique that could open up a bidding war for the company, which already has an offer from Shell on the table.
The AIM-listed explorer said that it had discovered more oil off the coast, with US operator Anadarko also working on the project.
The Golfinho discovery in may hold more than 20 trillion cubic feet (Tcf) of gas, and would underpin a plan to develop a world class liquefied natural gas export operation in Mozambique. A bid totalling $2bn (£1.2bn) from Shell for Cove had been recommended by its board but the new find could attract other suitors to join the battle.
Thailand’s PTT had also tabled a $1bn offer for Cove that was rejected.
Anadarko is one of the companies that, as a partner in Mozambique, could find a takeover bid attractive.
Cove chief executive John Craven said: “We are thrilled at the success of the Golfinho exploration well, our eleventh successful well offshore Mozambique.”