Pharos pulls out of consortium bidding for Shell’s Egypt assets
Pharos Energy bails on consortium eyeing Shell Egypt assets: Pharos Energy has withdrawn from a consortium in the running to acquire Shell’s onshore assets in Egypt due to the collapse in oil prices, it said in a statement yesterday. Pharos was part of a consortium with Cheiron and Cairn Energy, which had moved to a second round of bidding to acquire Shell’s assets in the Western Desert. Egypt’s East Gas was invited to the next round of bidding which remains open.
The sale is unfortunately coinciding with one of the biggest oil crashes in history: Bidders are likely to reduce the value of their offers in light of the crash in oil prices which earlier this week saw US crude fall into negative territory for the first time in history.
Background: The Dutch oil giant had been looking to sell the assets for as much as USD 1 bn, a figure that now looks increasingly out of reach as the sector comes under increasing pressure from an unprecedented demand slump and a supply glut.