London-listed Pharos Energy has confirmed that it is looking at the purchase of Shell's upstream portfolio in the Western Desert in Egypt as part of a consortium and is in the preliminary stages of its evaluation.
In a statement, Pharos said that the Board remains committed to its strategy of delivering sustainable long-term growth.
"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. The Board evaluates M&A opportunities with reference to strict strategic, financial and operational criteria. Any transaction will be pursued only if the Board determines it to be in the best interest of stakeholders and will be subject to shareholder approval."
Pharos added that there is no guarantee that it will make any formal proposal to Shell but that it will update the market if and when it does.
In October last year Shell said it was putting its current onshore Upstream assets in the Western desert in Egypt up for sale to focuses on growing its Egyptian offshore exploration and integrated gas business.