Royal Dutch Shell Plc, Europe’s largest oil company, offered to buy African explorer Cove Energy Plc for 992.4 million pounds ($1.6 billion) to gain a foothold in Mozambique.

Shell is offering 195 pence for each Cove share, a 26 percent premium to the closing price of the London-based company yesterday, according to a statement. Cove’s board separately said it expected to recommend the proposed acquisition.

Cove put itself up for sale last month after reporting one of the world’s largest gas discoveries in a decade off Mozambique. Cove has an ...