Serica Energy wins race for Pharos Energy with €170 million takeover agreement

July 27, 2026, by Nadja Skopljak

UK-based upstream oil & gas player Serica Energy has agreed to acquire compatriot Pharos Energy for £145.7 million (more than €170 million), with Pharos to withdraw its recommendation for an offer from Israeli Ratio Petroleum.

The acquisition is said to be consistent with Serica Energy’s long-standing strategic objective to increase its scale and diversification by adding overseas operations with a focus on regions which benefit from a supportive regional environment for upstream investment and increasing energy demand as well as room for further growth.

The deal would expand the company’s operations into Vietnam and Egypt, increasing its pro forma 2P reserves by 13% to 156.8 million barrels of oil equivalent, 2C resources by 15% to 129.4 million boe, and raising its expected 2026 exit production rate to about 70,000 boepd.

Katherine Roe, Pharos Energy’s CEO, said: “As announced in our recent trading update, the business is benefitting from strong operational momentum. At the same time, the Board of Pharos is delighted to be recommending this offer from Serica, which delivers shareholders a material premium in cash to the Ratio Offer.”

In addition to Pharos’ established in-country organizations and host-government relationships in Vietnam and Egypt, the combined group would bring together Serica’s proven subsurface capability and Pharos’ mature producing assets.

The combined group would also acquire approximately $45 million of cash held by Pharos as of June 30, and would benefit from a robust balance sheet, with material liquidity, with the capacity to optimize the delivery of infill opportunities in Vietnam and Egypt, while continuing to seek a farm out partner for a high-impact drill-ready prospect in Block 125 & 126, Vietnam and elimination of overlapping corporate overhead costs, Pharos Energy reported.

In line with the acquisition, Pharos Energy’s Board of Directors has decided unanimously to withdraw its recommendation of the Ratio Petroleum offer and intends to recommend the acquisition by Serica to shareholders. The board therefore proposes to adjourn until further notice the Ratio offer shareholder meetings which have been convened for August 17.

“The acquisition of Pharos is a compelling opportunity to deliver a first step in our long-standing strategic objective of adding to the diversification of our business through international expansion, on terms that are accretive on a per share basis across all key metrics, with multiple embedded growth options. Upon completion the transaction will boost our reserves, resources and add materially cash-generative production, while at the same time delivering an attractive liquidity route for Pharos shareholders,” said Chris Cox, CEO of Serica Energy.

“Pharos brings a highly experienced regional team and an operating model that mirrors our own focus on cash generation funding both growth and returns. As we continue to invest in the UK North Sea, with a multi-well rapid return drilling programme set to begin in 2027, this presents a complementary platform from which to grow in South East Asia, a region with increasing energy demand that benefits from a supportive environment for upstream investment. With a robust balance sheet and material ongoing cash generation, we continue to analyse multiple opportunities to deliver further M&A and create significant value for shareholders.”