Royal Dutch Shell announced Thursday that it has extended its $1.8 billion (GBP 1.1 billion) bid for East Africa-focused Cove Energy. However, once again, Shell has not increased the offer to match its rival PTT Exploration & Production's bid of $1.9 billion.
Shell's previous offer had been due to run out on Wednesday this week, but Thursday's extension means that stockholders in the company now have until 1 p.m. (London time) on July 11 to accept the Anglo-Dutch company's bid.
Cove – whose shares are quoted on London's Alternative Investment Market – holds an 8.5-percent stake in the
Rovuma offshore basin in Mozambique. The area is being explored – with plenty of success so far – by operator Anadarko for significant natural gas resources that both Shell and PTT believe would be suitable for LNG projects. The acquisition of Cove would give either of these two oil giants an important foothold in the region.
A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Related Companies
Digg It
Stumble it!
Newsvine
Del.icio.us
Technorati
Reddit
Facebook
