ONGC’s overseas exploration arm ONGC Videsh Ltd (OVL) and GAIL India have confirmed their interest in bidding for UK-based Cove Energy. The consortium may have to quote a price in excess of $1.77 billion, the amount already quoted by Thai firm PTT.
Cove is listed on the Alternative Investment Market of the London Stock Exchange. Its main asset is an 8.5 per cent stake in Mozambique’s Rovuma Offshore Area 1, estimated to have recoverable reserves of 30 trillion cubic feet of natural gas. Bharat Petroleum Corporation and Videocon Industries own a 10 per cent stake each in the Rovuma block. In a statement to stocks exchanges on Wednesday, ONGC said OVL and GAIL India were “currently participating in the formal sale process announced by Cove on January 5”. It, however, did not elaborate on the bid price.
“At this stage, no decision has been made by the consortium whether to make an offer for Cove or the price at which any such offer may be made. Therefore, there can be no certainty that the consortium will make an offer for Cove, or as to the terms of any offer,” the statement said.
Separately, GAIL India said it was in association with a partner (consortium), considering a joint participation in the formal sale process initiated by Cove Energy Plc.