Shell makes pitch to join Mozambique gas partners

Offshore staff

THE HAGUE, the Netherlands – Shell Bidco, a subsidiary of Shell, has reached agreement to acquire UK independent Cove Energy.

Cove’s main asset is an interest in Mozambique’s Rovuma offshore Area 1, containing numerous large gas and oil discoveries. The proposed transaction values Cove at $1.56 billion.

Shell already has interests in Tanzania to the north, where it recently drilled a dry deepwater well in partnership with Petrobras.

But Cove would bring access to proven reserves off Mozambique, and further interests offshore Kenya.

Rovuma offshore Area 1 has potential to deliver 30 tcf-plus of gas, sufficient for six LNG trains. Bringing these resources on stream is a strategic priority for the Mozambican government, the company adds, to further the country’s economic development.

Shell is already one of the world's largest LNG producers, with access to global markets and with around 20.5 MMt/yr of equity LNG capacity onstream.

The company claims to have established industry records for LNG plant construction times and operational start-ups, delivering projects from concept to first production. It currently produces LNG via joint ventures in Australia, Brunei, Malaysia, Nigeria, Oman, Russia, and Qatar.

Shell says it would also bring its extensive project finance experience across the LNG value chain. Management is confident that the company’s technologies, plant designs, LNG operational experience and proven commercialization strategies could all benefit the Rovuma offshore Area 1 project.

2/23/2012

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...