PTTEP completes takeover of Cove Energy
PTT Exploration and Production Plc (PTTEP) has succeeded with its planned entry into African territory, with the complete takeover of 91.37 per cent stake in London-listed Cove Energy Plc
"The offer process is declared wholly completed," said Tevin Vongvanich, president and CEO of the Thai company. "PTTEP will become a partner in Rovuma area 1 and other petroleum projects in the Republic of Mozambique and the Republic of Kenya with other joint venture partners.
Following the transaction, PTTEP would request the London Stock Exchange for the cancellation of trading in Cove Shares on the Alternative Investment Market (AIM). Once Cove Shares are delisted, Cove will be reregistered as a private company. Meanwhile, PTTEP will shortly begin the process of compulsory tender for the remaining 5.68 per cent of Cove Shares from Cove shareholders who have not yet accepted the offer.
Rovuma area 1 in the Republic of Mozambique is a world-class gas discovered area which has estimated gas resources of up to 60 trillion cubic feet ("TCF") including the oil prospect in the Black Pearl structure. This project is an important PTTEP's base to increase reserves and production volumes.
The joint venture partners for Rovuma area 1 are PTTEP AI with 8.5 per cent, Anadarko (operator) with 36.5 per cent, Mitsui with 20 per cent, ENH with 15 per cent, Bharat Petroleum with 10 per cent and Videocon holds the rest of 10 per cent interest.
The acquisition also includes 10 per cent in the onshore Rovuma exploration block in the Republic of Mozambique and 10 - 25 per cent in seven exploration blocks in the Republic of Kenya offshore deepwater.
"This success will mark PTTEP's significant step into the highly prospective East Africa hydrocarbon region which will be a vital LNG production base in the future in order to support the increasing demand of Asian region including Thailand," Tevin said.