The London-based Pharos Energy has quit the consortium which has been assessing the acquisition of Shell Egypt’s upstream onshore assets in the Western Desert
Pharos Energy not to acquire Shell’ Egypt's Western Desert assets. (Credit: 272447 from Pixabay)
Pharos Energy said that it has dropped plans to acquire Shell Egypt’s upstream assets in Egypt’s Western Desert owing to the current market conditions.
In March 2020, the UK-based oil and gas company confirmed press speculation that it was part of a consortium, which was in the preliminary stages of assessing the acquisition in Egypt.
However, the company did not disclose the other participants in the consortium.
In October 2019, Shell Egypt announced its intention to offload its onshore upstream assets in the Western Desert in order to fully focus on growing its offshore exploration and integrated gas business in Egypt.
The portfolio for sale includes Shell Egypt’s stakes across 19 oil and gas producing development leases in the Badr El Din and Obaiyed area and four exploration concessions – North East Abu El Gharadig, West Sitra, Bed 1 gas and West Alam El Shawish.
Pharos Energy said that its board concluded that acquisition of the Western Desert assets of the Royal Dutch Shell’s subsidiary is not expected to be in the best interests of the company’s shareholders. As a result, the company has decided to pull out from the consortium that is assessing the opportunity.
The company’s board stated: “The Board remains committed to its strategy of delivering sustainable long-term growth, and our strategic ambition is to deliver value for all our stakeholders through the responsible management of our current portfolio and the careful selection of growth opportunities.”
Currently, Pharos Energy is engaged in production, development and exploration activities in Egypt, Israel, and Vietnam.
Operations of Pharos Energy in Egypt
In Egypt, the company has a 100% working interest in the El Fayum oil Concession located in the Western Desert. It is operated by Petrosilah, a 50/50 joint venture between the company and Egyptian General Petroleum Corporation (EGPC).
Pharos Energy is also an operator with a 100% working interest in the North Beni Suef Concession, located immediately south of El Fayum.