Shell seals £1.2bn Cove Energy deal

Europe’s largest oil company, Royal Dutch Shell, on Tuesday said it has come to an agreement to buy Mozambique-focused Cove Energy for £1.12bn, according to a company statement.

Shell secured the deal after it increased its offer for Cove Energy

from a previous 195 pence to 220 pence a share to match a competing offer from Thailand’s PTT Exploration & Production.

Cove put itself up for sale in January following a large natural gas discovery off the coast of Mozambique. It now owns a 8.5 percent stake in the Rovuma Area 1 natural gas block, which may hold an estimated 30 trillion cubic feet of fuel.

Shares in Cove rose 2.5 percent, to 226.7, following the news.