Shell Pulls Out from East Africa Gas Talks

Royal Dutch Shell has pulled out from talks with Anadarko Petroleum Corp regarding buying a share of its gas discoveries off the coast of Mozambique, because the asking price had risen too high.

Wall Street Journal reported that the Anglo-Dutch firm is returning its exploration focus to the West African heartlands.

The recent development follows Shell's defeat last year in a bidding war for one of Anadarko's partners in the discoveries, Cove Energy, which was eventually acquired by Thai oil company PTT Exploration & Production (PTTEP), WSJ said.

Anadarko is looking to sell a stake of up to 10% in Mozambique discoveries estimated to hold as much as 65 trillion cubic feet of gas.

Shell plans to deploy a newly refurbished rig to begin drilling for the first time in deep water off the coast of Benin and Gabon, as well as off South Africa's northwestern coast next year, WSJ said.