Cove has an 8.5% share in the Rovuma Offshore Area 1 in Mozambique. The gas discoveries made are going to be used to provide feedstock for a major LNG liquefaction project.
East Africa is a major prospective hydrocarbon province, which has seen a significant increase in exploration activity in recent years. Shell already has interests in Tanzania, and the acquisition of Cove would mark Shell's entry into exciting new hydrocarbon provinces in Kenya and Mozambique, with significant potential for new LNG from recent gas discoveries offshore Mozambique.
Shell is one of the world's largest LNG producers and holds the largest equity share of LNG capacity among IOCs, currently holding some 20.5 million tpy of equity LNG capacity on-stream.
In Mozambique, the Rovuma offshore basin is a frontier exploration area that holds large resources of natural gas reserves, suitable for LNG projects. According to Cove, the play represents the potential for 30+ trillion ft3 and 6 LNG trains.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22022012/shell-offers-us$-1-6-billion-for-cove-energy/