Egypt-Focused Pharos Eyes Shell Assets

Pharos Energy is eyeing Shell's upstream operations in the Western Desert of Egypt, the London-listed producer said on March 6.

The company, which produces around 5,600 barrels of oil equivalent/day at Egypt's El Fayum concession, confirmed earlier press reports, saying it was "participating in the process for the purchase of these assets as part of a consortium." Pharos is "in the preliminary stages of its evaluation," it said.

Shell's Western Desert business includes stakes in 19 producing oil and gas development leases along with four exploration permits, in the Badr El Din & Obaiyed area. It announced it wanted to sell these assets in October last year, in order to focus on offshore activities in Egypt.

In addition to El Fayum, Pharos also has rights to the North Beni Suef exploration area in Egypt. It also produces oil and gas in Vietnam and is exploring for hydrocarbons in Israel.

Reuters reported last month that Pharos had bid for Shell's assets. Offers also came from US producer Apache, which also has production in Egypt; and Egyptian firms Apex International Energy and Cheiron.