Shell agrees deal to buy Cove Energy for £1.1bn

The Shell logo Shell is looking to tap into natural gas reserves off the coast of Mozambique

Related Stories

Royal Dutch Shell has reached an agreement to buy London-listed Cove Energy for £1.12bn in a bid to tap into East Africa's gas reserves.

Shell Exploration and Production, a subsidiary of the Anglo-Dutch giant, agreed to pay 220 pence a share, a 10% rise on its first bid made in February.

The deal still needs approval from the Mozambique government.

Separately, miner Anglo American said it had sold the South African arm of Scaw Metals for about $430m (£269m).

The sale to an investment consortium represents part of Anglo's wider move to focus on core assets.

'Significant potential'

Shell said the Cove deal would "mark [the company's] entry into exciting new hydrocarbon provinces in Mozambique and Kenya".

"East Africa is a major prospective hydrocarbon province, which has seen a significant increase in exploration activity in recent years."

It added the acquisition represented "significant potential" for liquefied natural gas discoveries offshore in Mozambique and further exploration in East Africa.

The company already has interests in Tanzania.

Cove executive chairman Michael Blaha said the offer "provides very significant value to Cove shareholders".

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Lucy FranklinDouble trouble

    'Rising house prices left me high and dry - twice!'


  • NS Savannah, 1962Nuclear dream

    The ship that totally failed to change the world


  • Ed Miliband takes a selfie at a Cambridge hairdressersNo more photo ops?

    Why is Ed Miliband drawing attention to his public image?


  • Espresso cup7 days quiz

    Which city serves the strongest cup of coffee?


  • Glasgow 2014 quaichs and medalsQuaich guide

    What do the Scottish gifts given to Games medallists symbolise?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.