Cove bids back on after tax spat

Bids for oil and gas company Cove Energy are set to recommence after authorities in Mozambique cleared up uncertainties over tax. Cove, whose major operations are in Mozambique, put itself up for sale in January, attracting suitors including Royal Dutch Shell and Thailand’s PTT Exploration. But the process stalled after Mozambique said any deal would be subject to capital gains tax.

Cove yesterday moved to allay fears by issuing a statement saying the tax payable would not be prohibitively high. It said the sale process will continue as a result.