Royal
Dutch Shell Plc, the Anglo-Dutch oil company, Wednesday proposed a
GBP992.4
million cash offer to buy U.K.-listed COVE ENERGY PLC, marking the
company's
first foray into Kenya and Mozambique,
the latter of which already shows significant potential for liquefied
natural
gas projects.
Shell is one of the world's largest LNG producers, with equity sales volumes of
18.83 million metric tons a year in 2011. Adding Cove's assets to its portfolio
is designed to strengthen and diversify Shell's existing global LNG portfolio
of production and development projects at a time when demand for natural gas is
expected to rebound due to China's rising energy needs.
At 1200 GMT, Cove's shares were +38.25 pence, or 24.7%, at 192.8 pence.