ONGC and GAIL plans to offer USD 2 billion for Cove

Posted By: Religare
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ONGC and GAIL plans to offer USD 2 billion for Cove
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In a tug of war to acquire Africa-focused gas explorer Cove Energy, Indian state-owned oil and gas companies, Oil and natural Gas Corp and GAIL has planned to offer USD 2 billion (Rs 9,800 crore) to win bid against the UK-listed company, certain media report said.

The proposed bid by the Indian duo will leave behind a USD 1.77 billion bid offered by Thai state-controlled oil and gas group PTT and Royal Dutch Shell Plc's offer worth USD 1.6 billion.

The Cove Energy announced plans to sell in January after which a number of companies around the world shown interest in the bid.

ONGC Videsh Ltd, the overseas investment arm of oil explorer and producer ONGC, and GAIL could make their combined bid this week, certain media report claimed.

The media report further added that the state-run conglomerate may value London-listed Cove at 245 pence per share. However, Officials at ONGC Videsh and GAIL remained unavailable to confirm this news.

Eyeing growth opportunity in East Africa, a previously little-explored area which is tipped to become a major natural gas producing region, has suddenly become preferred asset for the oil and gas company.

The asset of Cove Energy mainly comprises of 8.5 per cent stake in Mozambique's Rovuma Offshore Area 1, where another operator Anadarko said recoverable reserves could top 30 trillion cubic feet of natural gas.

Dion Global Solutions Ltd

Read more about: ongc, gail
Story first published: Tuesday, February 28, 2012, 23:33 [IST]
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