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Thursday, 27 February 2020

Apache, Pharos Energy among bidders for Shell’s onshore assets

M&A WATCH- Apache, Apex, Cheiron among bidders for Shell’s onshore assets: US oil and gas producer Apache, Egyptian firms Apex International Energy, Cheiron, and London-listed Pharos Energy have submitted bids for Shell’s onshore oil and gas assets in Egypt, Reuters reports, citing informed sources. Other undisclosed Asian and Middle Eastern companies have also made offers, the sources said. The transaction could take longer than expected to close due to weaker gas prices and the government’s lengthy approval process for the sale of such assets, according to the sources.

Background: Shell launched the sale process at the end of November to sell its onshore upstream assets in the Western Desert to focus on expanding its Egyptian offshore gas exploration efforts, appointing investment bank Citigroup to run the sale that could fetch around USD 1 bn. Shell’s portfolio in the Western Desert includes stakes in 19 oil and gas assets including the Badr El Din and Obaiyed area, as well as the North East Abu El Gharadig, West Sitra, Bed 1 gas, and West Alam El Shawish concessions. Reuters’ report noted that they produced 100k boe/d last year.

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