ONGC and GAIL are planning to outbid Royal Dutch Shell and Thailand's PTTEP with a $2Bn offer for UK's Cove Energy.

Royal Dutch Shell has offered to buy Cove Energy Plc for $1.6Bn. Shell is offering 195 pence for each Cove share, read this.

Cove put itself up for sale last month after reporting one of the world’s largest gas discoveries in a decade off Mozambique. Standard Chartered Bank and Cenkos Securities Plc are advising Cove on the sale.

London based Cove Energy Plc was incorporated in 2003. Cove Energy plc, through its subsidiaries, engages in the exploration, development, and production of oil and gas reserves in Mozambique, Tanzania, and Kenya. The company also involves in the exploration of mineral properties.

It holds interests in the Rovuma offshore gas wells and the Rovuma onshore concession in Mozambique; the Mnazi Bay/Msimbati gas fields in the Mtwara region of south-eastern Tanzania; and in five offshore blocks in Kenya.

Blackrock Inc. backed Cove Energy holds an 8.5% stake in the Rovuma Area 1 off Mozambique, which is operated by Anadarko Petroleum Corp., and has Bharat Petroleum Corp. and Videocon Industries Ltd. as partners, according to the company's website. The partners have found 15 trillion to 30 trillion cubic feet of recoverable gas, enough to support the setting up of a liquefied natural gas production facility.

The U.K. explorer opened its data room in December'11 to interested bidders in its Mozambique project. Cove is also working with Total SA of France and BG Group Plc to search for oil and gas off Kenya and with Etablissements Maurel & Prom SA in Tanzania.

Earlier this month, Cove Energy Plc sold it's gas stake at the Mnazi Bay to Wentworth Resources, effectively exiting the Tanzanian gas upstream sector.

Under the terms of the agreement Wentworth Resources Ltd, will acquire Cove Energy’s subsidiary, Cove Tanzania limited by 100 per cent at the cost of $39Mn, according to information released by Wentworth early this month.The deal awaits the final approval of the Tanzanian government, read this.

Another state owned oil explorer, Oil India had also envinced interest in acquiring Cove Energy.

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