Thai PTTEP gets Mozambique government consent for Cove Energy takeover

01-Jun-2012 Intellasia | Platts | 7:01 AM Print This Post

Thailand’s PTT Exploration and Production Wednesday said that its subsidiary PTTEP Africa Investment Limited has won approval from the Mozambique government for its proposed takeover of Africa-focused Cove Energy.

The receipt of this consent was required as a result of the indirect change of control of Cove’s Mozambique interests if the recommended cash offer was finalised, the company said.

The receipt of this written consent confirms that Mozambique’s government has strong confidence and trusts PTTEP’s capability, it added.

PTTEP May 23 made a cash offer of GBP1.22 billion ($1.93 billion) for Cove Energy, trumping oil major Shell’s April 24 offer of GBP1.12 billion.

Cove’s prized asset is its minority stake in the recent Anadarko Petroleum-led Mozambique natural gas finds.

Cove has an 8.5 percent interest in the Rovuma Offshore Area 1 block in Mozambique, where Anadarko has said the resources are enough for a large-scale LNG development, with first output expected mid-2018.

A final investment decision on the LNG project is expected in 2013.

PTTEP May 23 said that Cove and the Rovuma project represent a strong fit for the company, and the proposed acquisition of Cove was consistent with PTTEP’s strategy of leveraging the LNG value chain of the state-owned PTT Group.

PTTEP added that it was committed to being a partner with the Mozambique government and the partners of the Rovuma project in the development of the LNG project and the marketing of LNG volumes.

PTTEP is Thailand’s only upstream operator and is one of the top 10 publicly listed companies on the local stock exchange. PTTEP is owned 65 percent by integrated national oil and gas company PTT, in turn 51 percent held by the Thai government.

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