Comments
The battle for Cove Energy Plc, the company listed in London with a significant share of natural gas off Mozambique, may gain momentum if Indian public sector giants in oil and natural gas sector — ONGC and GAIL — jointly enter the bidding war that has already drawn some of the global energy giants into the fighting arena.
In a communication to the stock exchanges today, GAIL, without openly identifying its partner, said that it was in association with its partner (consortium) considering joint participation in the formal sale process initiated by Cove Energy Plc.
But the company said that at this stage, no decision has been made by the consortium as to whether to make an offer for Cove or the price of the offer, if made. GAIL said that there could be no certainty that the consortium would make an offer for Cove or to the terms of the offer. But if any offer is made for Cove, it would be made in cash, GAIL has said.
Media reports have said that if GAIL and ONGC eventually decide to enter the bidding war for the Africa-centred gas explorer Cove Energy, they would be the second Government-owned company from Asia to bid for it. Already energy giant Royal Dutch Shell and PTT group from
Thailand have submitted bids. The Thai Government has a 65 per cent stake in PTT.
The main reason for the aggressive bid for Cove was stated to be its 8.5 per cent stake in the Rovuma River Basin off Mozambique’s coast estimated to contain 30 trillion cubic feet of gas, apart from interests in Kenya.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.